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Marcellus Drilling News
  • Industrywide Issues | Lease & Royalty Payments | Litigation | Ohio | Statewide OH

    Video: Update on DMA Cases Before Ohio Supreme Court

    September 15, 2015September 15, 2015

    court gavelFor several years a thorny legal issue in Ohio has been bubbling in the background–the Dormant Minerals Right Act (DMA). In a nutshell, there are two DMAs in Ohio–one passed in 1989 that went into effect in 1992, and another in 2006 which added certain additional procedural requirements to the 1989 version. The DMA in its various versions provides for mineral rights that had previously been separated from surface rights to transfer to the surface owner under certain conditions. The problem for both drillers and for landowners in Ohio, is in knowing which set of DMA rules to use (1989 or 2006) in determining who owns the mineral rights. It’s a big problem when drillers are spending sometimes up to $15,000 per acre in lease bonuses, to say nothing of where to send the royalty check. Some drillers are holding back on leasing because of this issue. There are now 12 (!) different cases before the Ohio Supreme Court dealing with the DMA and decisions may come soon for many of them. We get a good overview and update on DMA litigation from the legal beagles at the Bricker & Eckler law firm…
    Read More “Video: Update on DMA Cases Before Ohio Supreme Court”

  • Industrywide Issues | Pipelines

    New National Campaign Promotes Safety/Benefits of NatGas Pipelines

    September 15, 2015September 15, 2015

    can you handle the truthThere are over 300,000 miles of natural gas pipelines in the ground in the United States–did you know that? Those pipeline bring cheap, abundant, clean-burning natgas to American households, businesses, and electric generating plants. Nobody gave pipelines a second thought for oh, the past 75 years or more. That is, until coordinated campaigns by groups of nutters who irrationally oppose fossil fuels, seeking to demonize pipelines–the safest form of transportation in existence. Unfortunately their lies require a response. The Interstate Natural Gas Association of America (INGAA) has stepped up to the plate, launching a nationwide campaign, complete with a TV commercial, to educate American consumers about the benefits of natural gas and natural gas pipelines…
    Read More “New National Campaign Promotes Safety/Benefits of NatGas Pipelines”

  • Best of the Rest

    Marcellus & Utica Shale Story Links: Tue, Sep 15, 2015

    September 15, 2015September 15, 2015

    best of the restThe “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Antis oppose 3 Tetco pipelines; PA’s Engelder goes to OH; antis oppose fracking near Pittsburgh; Shell’s emissions quota for cracker plant; Sunoco LP shops for pipeline land; hearing set for Hilcorp wellpad; Moxie electric plant clears another hurdle, and more!
    Read More “Marcellus & Utica Shale Story Links: Tue, Sep 15, 2015”

  • American Energy Partners | Energy Companies

    McClendon Nearly Triples Australian Shale Deal – 55M Acres!

    September 14, 2015September 14, 2015

    unconvetional wildcattersThree weeks ago MDN told you that Aubrey McClendon and his American Energy Partners had made their first foray into international oil and gas drilling (see Aubrey McClendon Leases 21.5 MILLION Acres…in Australia?!). McClendon’s move was to lock up acreage under lease, which is how he typically operates, and figure out how to finance the drilling later. Once he got going, Aubrey just couldn’t help himself. He didn’t stop with 21.5 million acres as originally announced–he kept right on going and ended up cutting four deals Down Under for a total of an eye-popping 55 million acres! And he’s working on a deal for ANOTHER 10 million acres!! Here’s the details as we know them…
    Read More “McClendon Nearly Triples Australian Shale Deal – 55M Acres!”

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

    Chesapeake Settles Royalty Lawsuit in TX; Implications for PA?

    September 14, 2015September 14, 2015

    court gavelLandowners in Pennsylvania have been upset with shenanigans by Chesapeake Energy in shorting them out of royalties for years. In 2013 a group of landowners in Bradford County, PA filed a lawsuit against Chesapeake over the royalty issue (see Bradford County, PA Landowners Sue Chesapeake over Royalties). Since that time a number of lawsuits have popped up in PA against Chesapeake over the same issue (see Judge Rules Royalty Lawsuit Against Chesapeake in PA Continues). PA is not the only state where landowners have problems with Chesapeake’s royalty calculations. Another such case was filed in Texas in 2013–and Chesapeake just settled that case out of court…
    Read More “Chesapeake Settles Royalty Lawsuit in TX; Implications for PA?”

  • Belmont County | Energy Companies | Gulfport Energy | Jefferson County (OH) | Ohio

    Gulfport Energy Closes on 24K Acres in OH; Bumps Up Credit Line

    September 14, 2015September 14, 2015

    done dealA couple of bits of news from Gulfport Energy, a driller focused primarily on the Utica Shale in eastern Ohio. In April, MDN reported that Gulfport had inked a deal with Paloma Partners III, a small energy & exploration company headquartered in Houston, to purchase 24,000 acres in Belmont and Jefferson counties (Ohio) for $12,500 per acre (see Gulfport Energy Pays $12,500 per Acre for 24K OH Utica Acres). As of last week that deal closed at a final purchase price of $301.9 million. Gulfport also reports they’re about to get an increase in their line of credit, adding an extra $125 million to what they can borrow…
    Read More “Gulfport Energy Closes on 24K Acres in OH; Bumps Up Credit Line”

  • Energy Services | Industrywide Issues | NGLs | Pennsylvania | Pipelines | Statewide PA | Sunoco Logistics

    Sunoco LP Launches Open Season for Second Mariner East 2 Pipeline

    September 14, 2015September 14, 2015

    open seasonSunoco Logistics Partners, which owns the Mariner series of pipelines (East, West and South), has just launched a new binding open season–time when drillers and other shippers can sign up for capacity–for an expansion of the planned Mariner East 2 project. In April 2014 MDN brought you the news that Sunoco LP had completed an open season for Mariner East 2 and had enough customers to move forward with the project (see Sunoco Logistics Will Build $2.5B Mariner East 2 Pipeline). In June we told you about Sunoco LP’s plans to build two new Mariner East 2 pipelines, side by side, if they can get enough customers (see Mariner East 2 Giving Birth to Twin Pipelines). Our interpretation is that this new open season, launched last week, is to sign up customers for the second Mariner East 2 pipeline…
    Read More “Sunoco LP Launches Open Season for Second Mariner East 2 Pipeline”

  • Energy Services | Enterprise Products Partners | Industrywide Issues | Marathon Petroleum | NGLs | Pipelines

    Centennial Pipeline May Reverse, Sending NE NGLs to the Gulf

    September 14, 2015September 14, 2015
    centenmap
    Centennial Pipeline map – click for larger version

    On Friday MDN told you that after Marathon Petroleum buys MarkWest Energy, they are eyeing sending natural gas liquids (NGL) gathered by MarkWest south to the Gulf Coast (see Marathon Hints MarkWest Merger Plan May Include NGLs to Gulf). No specific plans were mentioned but a vague statement about “more details coming by the end of the year.” It seems some of those details have already leaked. The leaker is Marathon’s joint venture partner in the Centennial Pipeline, Enterprise Products Partners. Enterprise said at an investors conference last week that they are actively evaluating a plan to reverse the flow of the Centennial from Illinois to the Gulf Coast to send NGLs from the Marcellus/Utica to the Gulf for processing and use in cracker/petrochemical plants…
    Read More “Centennial Pipeline May Reverse, Sending NE NGLs to the Gulf”

  • CNG/LNG | Exporting | Industrywide Issues | Regulation

    3rd Eastern Canada LNG Export Plant Receives Approval

    September 14, 2015September 14, 2015

    approvedIn February MDN told you that Spanish oil giant Repsol was accelerating plans to build an LNG export terminal on the coast of Saint John, Newfoundland (see Repsol Accelerates Plan for Canadian LNG Exports Fed by Marcellus). The Canaport LNG project, as it’s called, is one of five potential projects we identified in eastern Canada back in August 2014 that will potentially export Marcellus/Utica gas (see List of LNG Export Projects for Marcellus/Utica Shale Gas). Two of the five projects–Bear Head LNG and Goldboro LNG, both located in Nova Scotia–were approved by the Canadian National Energy Board (CNEB) in August (see 2 Marcellus LNG Export Projects Get Canadian Approval). Good news: The Canaport LNG project has now also been approved by the CNEB…
    Read More “3rd Eastern Canada LNG Export Plant Receives Approval”

  • Harrison County | Industrywide Issues | Lewis County | M&A | West Virginia

    WV Roustabout Company Sells Itself to Another WV Company

    September 14, 2015September 14, 2015

    M&ABasin Energy, which acts as a holding company to invest in (and run) other companies located in the Marcellus/Utica, is based in Bridgeport (Harrison County), WV. Basin’s first acquisition was ProActive Services, an operator of natural gas pipeline compressor stations and other related oilfield services. On Sept. 1, Basin closed a deal on their second subsidiary–the Jane Lew (Lewis County), WV-based Starett’s Well Service, a specialty roustabout services firm, focused on well site and midstream natural gas infrastructure in the Marcellus and Utica Shale regions…
    Read More “WV Roustabout Company Sells Itself to Another WV Company”

  • Energy Companies | Rice Energy

    Rice Energy Raises & Donates $600K to First Responders

    September 14, 2015September 14, 2015

    kudosIn an example of yet another instance of our wonderful industry blessing the communities in which it works, Rice Energy has just completed an annual fundraising event which raised $600,000 which they donated to 36 different first responder organizations in Pennsylvania and Ohio at a ceremony last Friday, September 11th. The first responder organizations include local volunteer fire departments, emergency medical services, regional safety organizations and police departments. Kudos to Rice for being good corporate citizens. By the way, when was the last time you heard about a “green” group like Delaware Riverkeeper, Food & Water Watch, or the Sierra Club raising and donating money to anyone but themselves? Oil & gas industry = generous givers; Environmental wackos = selfish takers…
    Read More “Rice Energy Raises & Donates $600K to First Responders”

  • Energy Companies | Hess

    Hess Board Member Buys 7K Shares, Now Owns $3.2M in Hess Stock

    September 14, 2015September 14, 2015

    all inWe occasionally bring you news of when senior management or members of the board of directors for an upstream (drillers) or midstream (pipelines) company either buy or sell shares of stock in their own company. It’s called “insider trading.” There are good reasons to do both–buy or sell. But let’s be honest, if you see upper management/board members repeatedly selling their shares of stock, it just doesn’t look good (see Carrizo Oil & Gas “Insiders” Continue to Sell Company Stock). When you notice someone buying their own company’s stock, and spending hundreds of thousands of dollars, it just kind of inspires confidence that, “Hey, if they believe in the company that strongly, maybe I should too.” Such is the case with a recent purchase by John H. Mullin III, a member of the board of directors at Hess, which drills in the Utica Shale. Mullin just bought 7,000 shares of Hess for $381,430. That brings Mullin’s total holdings of Hess stock to $3.2 million. One might say Director Mullin is “all in” when it comes to the company he helps direct…
    Read More “Hess Board Member Buys 7K Shares, Now Owns $3.2M in Hess Stock”

  • About MDN | Calendar

    Calendar of Events for Sep 14 – Dec 13 (90 Days)

    September 14, 2015September 14, 2015

    calendarBelow 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.
    Read More “Calendar of Events for Sep 14 – Dec 13 (90 Days)”

  • Best of the Rest

    Marcellus & Utica Shale Story Links: Mon, Sep 14, 2015

    September 14, 2015September 14, 2015

    best of the restThe “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. Part of today’s lineup: Baltimore wackos; OH educators; PA budget; RI electric rates; shale tech game changer.
    Read More “Marcellus & Utica Shale Story Links: Mon, Sep 14, 2015”

  • CNG/LNG | Energy Services | Exporting | Industrywide Issues | Kinder Morgan | Pipelines

    Marcellus/Utica Gas Heading to TX LNG Export Plant…in 2018

    September 11, 2015September 11, 2015

    Corpus Christi LNG Export PlantYesterday Kinder Morgan announced Cheniere Energy’s Corpus Christi LNG export facility on the coast of Texas has signed up to receive 385,000 dekatherms per day (i.e. 385 million cubic feet per day) of “southbound” natural gas from Kinder’s Natural Gas Pipeline Company of America (NGPL) expanded Gulf Coast mainline system for a 20-year term. There’s a lot to unpack in that statement, including the fact that the “southbound” natural gas will come from the Marcellus/Utica…
    Read More “Marcellus/Utica Gas Heading to TX LNG Export Plant…in 2018”

  • American Energy Partners | Energy Companies | Industrywide Issues | Litigation

    Federal Court Decides McClendon Can Keep ‘American Energy’ Name

    September 11, 2015September 11, 2015

    court gavelWe finally get to close the loop on a story we first brought you in 2013 (see McClendon Gets Sued in OH Over New Company’s Name). Robert Murray, owner of Murray Energy–a bigtime coal mining operation–sued Aubrey McClendon’s newly formed and named American Energy Partners over the use of the name “American Energy.” Murray operates a coal mine near Beallsville (Monroe County), OH under the name American Energy Corp., and has for years. He said McClendon’s use of the name infringes his own use of that name/brand. Finally, two years later, a federal court in Ohio has dismissed Murray’s lawsuit…
    Read More “Federal Court Decides McClendon Can Keep ‘American Energy’ Name”

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