Marcellus Drilling News

Industrywide Issues | Litigation | Pennsylvania | Regulation | Westmoreland County

PA County Court Rules Drilling OK in Ag/Residential District
November 5, 2015November 5, 2015

Since the Pennsylvania Supreme Court’s horrible decision in the infamous “Robinson” case that ruled local municipalities have the right to regulate oil and gas drilling via local zoning ordinances, there have been several cases where anti-drillers have tried to turn the decision (a decision they earnestly desired) on its head. The “Supreme” justices decided that local towns and cities can control where drilling takes place–although they must reserve at least one zoned district (industrial) where they allow oil and gas drilling (see PA Supreme Court Rules Against State/Drillers in Act 13 Case). What the antis didn’t factor is that there are some local communities with clear-thinking and straight heads on their shoulders–communities that may evaluate a request for drilling and grant an exception to allow it, in oh, say a agricultural/residential area instead of just an industrial area. Perhaps the most famous example of such a case currently being litigated is in Butler County where parents from the Mars School School district along with two Big Green groups from Philadelphia are using the courts to block, since last November, legally permitted and town-approved drilling 3/4 of a mile from the Mars School District (see Rex Drilling Operation Near Mars School Put on Hold). The convoluted argument from antis is, in essence, zoning regulations are not strict enough. That’s not what the Act 13 decision was about. You can’t have your cake AND eat it too. Some towns will decide to allow drilling under their zoning laws that you may not agree with! A similar case has just been decided in Westmoreland County in local county court–and it’s very good news for the Marcellus industry…
Read More “PA County Court Rules Drilling OK in Ag/Residential District”
Athens County | Industrywide Issues | Jackson County | Lawrence County (OH) | Monroe County | Morgan County | Noble County | Ohio | Perry County | Regulation | Washington County (OH)

9 Years Later Fracking Set to Begin in Ohio’s Wayne National Forest
November 5, 2015November 5, 2015

Wayne National Forest (WNF) is the only national forest in Ohio and portions of it are found in Athens, Gallia, Hocking, Jackson, Monroe, Morgan, Noble, Lawrence, Perry, Scioto, Vinton, and Washington counties. WNF is a “patchwork” of public land scattered among private land. Some 60% of the mineral rights below WNF are privately owned. Back in 2012 MDN told you that the U.S Forest Service, after holding up drilling in WNF since 2006, had cleared the way to allow fracking to begin (see Fracking Coming to Wayne National Forest in SE OH). Then any potential fracking came to a screeching halt because it was delayed by yet another federal agency–the Bureau of Land Management (BLM). Since 2012 the BLM has moved like a snail, but finally (finally!) the BLM has scheduled public scoping hearings for Nov. 17, 18 and 19. Things are moving once again. Once the hearings are done, there will no reason not to move forward with plans to drill (and frack!) in the WNF…
Read More “9 Years Later Fracking Set to Begin in Ohio’s Wayne National Forest”
Pennsylvania | Statewide PA

3 Democrats Win PA Supreme Court Seats – Trouble Ahead for O&G?
November 5, 2015November 5, 2015

The Marcellus industry can forget about getting a fair hearing by PA’s Supreme Court from here on out. In Tuesday’s election, three liberal Democrats were elected to fill three open seats on the court, the most elected at one time in the past, well, in forever. The court is now stacked against fair trials with a 5-2 majority for Lib Dems. America’s most liberal governor, Tom Wolf (so says non-partisan website InsideGov in an independent survey) didn’t waste any time attempting to use the court victory to pressure the legislature to cave to his radical budget demands. Typical. The Dems outspent the Republicans by three to one–i.e. they purchased the election…
Read More “3 Democrats Win PA Supreme Court Seats – Trouble Ahead for O&G?”
Energy Companies | Shell

Shell Restructures Upstream into Conventional/Unconventional Units
November 5, 2015November 5, 2015

On Tuesday, Royal Dutch Shell held a “Management Day” event in London (another was planned for Wednesday in New York) in which Shell announced the company is restructuring its upstream (i.e. drilling) division. The newly configured upstream division will be split into an Unconventional Resources branch to oversee development of shale, tight natural gas and oil, and oilsands, and an Upstream International branch to oversee all conventional exploration. Nowhere in the presentation, a presentation which includes Shell’s strategies for midstream and downstream too, could we find a single mention of Shell’s potential ethane cracker project in Pennsylvania. There was also no mention of Shell’s Marcellus/Utica drilling program, although we found a single slide with a brief mention on it of northeast shale (see the slide below). Shell’s overall message, in essence, was this: “The ongoing low price of oil (and gas) is changing everything, and we’re making tough decisions in light of this new reality.” Below is Shell’s full Management Day announcement, which includes a description about dividing upstream so every part of it is more accountable to the bottom line, and a description of their efforts to buy BG–which consuming a lot of Shell’s energy and attention at the moment…
Read More “Shell Restructures Upstream into Conventional/Unconventional Units”
Anti-Drilling/Fossil Fuel | Industrywide Issues | New York | Research | Statewide NY

Bought & Paid For: NY Anti-Drilling Researcher Gets $1.25M Grant
November 5, 2015November 5, 2015

There’s a new thing going around–it’s called “advocacy science.” And boy oh boy does it ever pay big bucks! Here’s how it works: Attend an Ivy League school like Cornell, do some “research” with a pre-determined outcome (i.e. ignore real science), wait a few years–and collect $1.25 million?! That’s how it worked out for Elaine Hill, currently a University of Rochester Medical Center researcher who did sloppy research that she published as a Cornell student (without peer review) in 2012. The “study” found babies born near fracked wells are allegedly more likely to have low birth weights than those not born near fracked wells (see her paper here). Later studies that grabbed headlines used her work as its foundation (see MSC Devastating Critique of “Low Birth Weight Near Fracking” Study). Hill is now being richly rewarded for her efforts in aiding the anti-drilling cause. The National Institutes of Health (your tax dollars at work) have just awarded Hill–yes Hill, one person–a staggering $1.25 million grant to do more “research.” In essence, she’s set for life. Bought and paid for. A millionaire. All it took was trading on the name of Cornell University and ignoring real science to get there. Here’s the kicker–her degree isn’t in biochemistry or biology or medicine or any hard science. Hill’s degree is in economics…
Read More “Bought & Paid For: NY Anti-Drilling Researcher Gets $1.25M Grant”
Best of the Rest

Marcellus & Utica Shale Story Links: Thu, Nov 5, 2015
November 5, 2015November 5, 2015

The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: the battle over Port Ambrose & LNG imports; firewood shortage NOT due to PA fracking; Audobon Society goes green with natgas; new “recommendations” (i.e. regulations) coming on rural pipelines from Quigley; Bernie “the commie” Sanders: ban fracking on federal lands; Yemen storm threatens New England natgas; and more!
Read More “Marcellus & Utica Shale Story Links: Thu, Nov 5, 2015”
Anti-Drilling/Fossil Fuel | CNG/LNG | Crime | Dominion Energy | Energy Services | Exporting | Industrywide Issues | Maryland | Statewide MD

Cove Point Protesters Disrupt Monday Night Football Game on TV
November 4, 2015November 4, 2015

The crazies have done it again. Did you happen to watch Monday Night Football this past Monday? It was the Indianapolis Colts playing the Carolina Panthers at the Bank of America stadium in Charlotte, NC. During the game, protesters of the Dominion Cove Point LNG plant “dramatically” rappelled from an upper deck and unfurled a banner that said “BoA: Dump Dominion”. Note that the teams are from North Carolina and Indiana, nothing to do with Maryland where the Cove Point plant is. The only tie-in is the stadium is named after Bank of America and BoA has some financial/commercial connection to Dominion. In fact, 99.9% of the people in the stadium or watching by television didn’t even know what was meant by the banner! The protesters not only endangered themselves, they endangered the people underneath them. What if the protesters had fallen? No, we’re not concerned for the nutjobs if they had Darwined themselves and dropped like a rock. We’re concerned about the people underneath them. What if the banner had fallen on people? What if a shoe had flown off one of these nutters and hit a baby on the head? The protesters finally came down and were promptly arrested for their crime…
Read More “Cove Point Protesters Disrupt Monday Night Football Game on TV”
Energy Companies | Range Resources Corp | Statewide VA | Virginia

Range Sells Coal Bed Methane Wells in VA, Focusing on Marcellus
November 4, 2015November 4, 2015

Range Resources announced yesterday they are selling off 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. The reason for the sale? Range is using the money to reduce debt and further concentrate on the “core” of their operations in the Marcellus/Utica. Range’s Nora/Haysi wells are coal bed methane wells. Drilling coal bed methane is akin to conventional drilling. All 3,500 of those wells produce an average of 109 million cubic feet per day (Mmcf/d) of natural gas. By comparison, using a very low number of 5 Mmcf/d for an average Marcellus well, it only takes 22 Marcellus wells to equal those 3,500 coal bed methane wells. Behold the power of fracking. Here’s what Range said yesterday about the sale…
Read More “Range Sells Coal Bed Methane Wells in VA, Focusing on Marcellus”
Blue Ridge Mtn Res/Magnum Hunter | Energy Companies

Magnum Hunter’s Latest Woes: More Investor Unrest, $29M Payment Due
November 4, 2015November 4, 2015

MDN has recounted numerous Magnum Hunter Resources (MHR) woes, including a threat to de-list their stock on the New York Stock Exchange (see Magnum Hunter Stock Avg Falls Below $1, Receives NYSE Warning), the threat of a takeover by a plucky young investor who owns 5% of the company (see Activist Investor Threatens Magnum Hunter with Takeover Unless…), and rumors the company may be preparing to file for bankruptcy protection (see Magnum Hunter: Preparing to Sell, or Filing for Bankruptcy?). A few new woes to add to the list: Another investor is threatening to form a coalition to “protect our interests” (i.e. force MHR to sell), and MHR needs to make a $29 million interest payment on bonds, due Nov. 15. The bondholders have hired lawyers in anticipation they may not get paid…
Read More “Magnum Hunter’s Latest Woes: More Investor Unrest, $29M Payment Due”
CONSOL Energy | Energy Companies | Industrywide Issues | Noble Energy | Pennsylvania | Pipelines | Regulation | Statewide PA | Wastewater

PA Allows Wastewater Pipelines to be Buried – With No Regulations
November 4, 2015November 4, 2015

A last minute change made to proposed new drilling regulations in Pennsylvania will mean (if adopted) that drillers can bury wastewater pipelines instead of being required to run them on top of the ground. Companies typically use pipelines in areas where it would be disruptive to have multiple truck trips in and out of an area. They’re also used to lower the cost of transporting wastewater (cheaper through a pipeline than by tanker truck). The change came after a letter-writing campaign launched by CONSOL Energy and their joint venture partner Noble Energy. But there’s a bit of controversy over the new standard that permits lines to be buried: the buried wastewater lines aren’t regulated. Not yet anyway…
Read More “PA Allows Wastewater Pipelines to be Buried – With No Regulations”
Industrywide Issues | Marshall County | Sand/Proppant | West Virginia

Unimin Energy Expands Frac Sand Terminal in Benwood, WV
November 4, 2015November 4, 2015

Unimin Energy Solutions – Marcellus/Utica Terminal Network – click for larger version

A Texas-based company, Unimin Energy Solutions, has 11 frac sand terminals throughout the Marcellus/Utica region (see the map). The most recent terminal they opened was this past June in Jerry Run, WV (see Unimin Energy Opens 11th Marcellus/Utica Frac Sand Terminal). Another of those 11 sites is in Benwood (Marshall County), WV. Last week Unimin held a grand opening of its 2nd unit train capable terminal at Benwood. The Benwood terminal now has almost 20,000 tons of silo storage capacity and can load up to 55 frac sand trucks per hour. CSX Railroad shuttles unit trains continuously to replenish frac sand inventory at the site. Details on last week’s soirée…
Read More “Unimin Energy Expands Frac Sand Terminal in Benwood, WV”
Chautauqua County | Electrical Generation | Energy Services | Industrywide Issues | Litigation | New York | NRG Energy | Regulation

Dunkirk, NY Coal-Fired Electric Plant Closing in January 2016
November 4, 2015November 4, 2015

As MDN previously reported, a coal-fired electric generating plant near Buffalo (in Dunkirk) was slated to be converted to burn natural gas–a win/win for everyone (see Dunkirk, NY Electric Plant Saved – Converting from Coal to NatGas). Oh sure, radical environmentalists like the Sierra Club opposed it, but that’s to be expected. Crazy people do crazy things. Everything seemed to be fine until a competitor hauled NRG, the plant’s owner, into court to dispute the change from coal to natgas. Sounds equally crazy that a competitor can stop the change, but NRG says fighting the case will take years, so they’re just going to close the plant down (see Lawsuit Prevents NY Power Plant from Converting to NatGas, Closing). Sadly, last week the New York State Independent System Operator (NYISO) gave its blessing to NRG to close down the Dunkirk plant. This is an economic nuclear bomb for that community. The Town of Dunkirk gets 40% of its tax revenue from the plant. What will they do now?…
Read More “Dunkirk, NY Coal-Fired Electric Plant Closing in January 2016”
Columbia Pipeline Group | Energy Services | Industrywide Issues | Pipelines

Columbia Pipeline 3Q15: Update on Numerous Pipeline Projects
November 4, 2015November 4, 2015

Yesterday Columbia Pipeline Group (CPG) issued its very first, fully independent quarterly update and financial report since being separated from NiSource into its own 100% independent company. Income was up year over year. The CPG update includes a section devoted to the status of pipeline projects they’re working on. It’s a considerable list of important (for the Marcellus/Utica) projects, including: East Side Expansion, Mountaineer XPress, Gulf XPress, Leach XPress, Rayne XPress, WB XPress, Washington County (PA) Gathering project, Big Pine Expansion project and the Pennant Joint Venture. Here’s the update…
Read More “Columbia Pipeline 3Q15: Update on Numerous Pipeline Projects”
CONE Midstream | Energy Services | Industrywide Issues | Pipelines

CONE Midstream 3Q15: Continued Pipe Expansion in West Virginia
November 4, 2015November 4, 2015

CONE Midstream is a joint venture between CONSOL Energy (the CO in CONE) and Noble Energy (the NE in CONE), formed in August 2014 (see CONSOL & Noble Energy Form New Marcellus Midstream Company). Yesterday CONE issued their third quarter 2015 update. While CONE touted their exponential growth in the volume of gas flowing through their system earlier this year (see CONE Midstream’s Strong Beginning, Hits 500 Mmcf/d 6 Mos Early), there was no mention of current or predicted future flow volumes in the update, nor in the investors conference call. Although there was one vague reference that we found. The 3Q15 update (below) provides the financials for the company and does mention where they have been spending money to expand their system–mainly in West Virginia. Here’s the low down…
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Crestwood Midstream | Energy Services

Crestwood Midstream 3Q15: Marcellus/Utica Pipeline Volumes Drop
November 4, 2015November 4, 2015

The Houston, TX-based Crestwood Midstream, which these days calls itself Crestwood Equity Partners, operates midstream businesses in multiple shale resource plays across the United States. Crestwood is engaged in the gathering, processing, treating, compression, storage and transportation of natural gas; storage, transportation, terminalling, and marketing of NGLs; and gathering, storage, terminalling and marketing of crude oil. Whew. Lots of different things! Yesterday Crestwood issued its third quarter 2015 financial and operational update. We’ve snipped out just those brief sections that touch on the Marcellus/Utica region, below. Among the news you’ll be interested in: The gathering pipelines operated by Crestwood in the southwest saw lower volumes in 3Q15 than in 3Q14, a result of low prices for natural gas and drillers deciding to shut-in some of their production. Crestwood continues to believe Antero Resources will soon complete 22 wells that will hit the Crestwood system sometime in 2016. And in the northeast part of the play, Crestwood expects to complete an expansion of the MARC I pipeline, connecting to the mighty Transco, “in the coming weeks.” Meanwhile, system volumes in the northeast are also down year over year…
Read More “Crestwood Midstream 3Q15: Marcellus/Utica Pipeline Volumes Drop”
Electrical Generation | Industrywide Issues | New York | Oswego County | Regulation

NY Gov Cuomo Vows to Fight FitzPatrick Nuke Plant Closure
November 4, 2015August 11, 2016

Two days ago MDN told you that the FitzPatrick nuclear power plant in Oswego, NY will shut down, largely because it can no longer compete with electric plants powered by cheap Marcellus Shale gas (see PA Marcellus Gas Claims a Nuclear Scalp in Central NY). New York Gov. Cuomo banned fracking, so NY doesn’t produce any cheap, abundant, clean-burning natural gas. That’s a burr under Andy’s saddle. He detests closing the nuke plant because gas has won. So instead of letting market economics (you know, free enterprise) dictate what happens in NY, Cuomo is gearing up to fight the closure of the FitzPatrick nuclear plant. The company that owns FitzPatrick also owns another nuke plant in NY called Indian Point. Cuomo WANTS to shut down Indian Point–has been trying to for years. But he doesn’t want to shut down FitzPatrick. What kind of crazy man is he?…
Read More “NY Gov Cuomo Vows to Fight FitzPatrick Nuke Plant Closure”