Marcellus Drilling News

Accidents | Industrywide Issues | Ohio | Regulation | Trumbull County | Wastewater

OH Injection Well Operator has Until Today to File Remediation Plan
June 19, 2015June 19, 2015

We’ve been following the story of water contamination in close proximity to five injection wells owned by Kleese Development Associates (KDA) of Warren, OH. The wells were shut down when water contamination was found in a local wetland (swamp) and a nearby pond. But after investigating, the Ohio Dept. of Natural Resources (ODNR) found that the injection wells were not the source of chemical contamination, but rather a salvage yard was at fault (see Trumbull Injection Wells NOT the Source of Wetland Contamination). The salvage yard is also owned by KDA, so the company is certainly not off the hook. The last word we had was that the federal Environmental Protection Agency (EPA) along with the Ohio Attorney General’s office executed search warrants for KDA looking for evidence of “environmental crimes” (see Youngstown Injection Wells Previously Shut Down Resume Operation). Meanwhile, the injection wells were reportedly restarted after correcting an issue found by the ODNR when they were there investigating. The new news is that Ohio EPA (not the feds, but Ohio) says KDA has until today to file a remediation plan to clean up a local creek affected by the so-far still undetermined source of a chemical spill coming from the salvage yard…
Read More “OH Injection Well Operator has Until Today to File Remediation Plan”
Anti-Drilling/Fossil Fuel | Dominion Energy | Energy Services | Industrywide Issues | Pipelines | Statewide VA | Statewide WV | Virginia | West Virginia

New Coalition of Same Old Antis Opposes Atlantic Coast Pipeline
June 19, 2015June 19, 2015

A small group of partisan, liberal, left-wing Democrats pretending to be a huge group of “concerned residents” from “Virginia and West Virginia” have formed a self-important group called Allegheny-Blue Ridge Alliance to oppose the 550-mile, $5 billion Dominion Atlantic Coast Pipeline project that will run from West Virginia into Virginia (benefiting the residents of both states) and on into North Carolina. MDN told you earlier this week about a group of RINOs and Democrats working together–wealthy gentry class landowners–working to stop the Atlantic Coast Pipeline from traversing their horse farms (see Virginia RINOs in League with Dems to Stop Atlantic Coast Pipeline). That group, called “All Pain No Gain”, is not among the members of Allegheny-Blue Ridge Alliance. This new coalition or group of groups is, in typical fashion, against all proposed routes for the Atlantic Coast Pipeline. It is an unreasonable and irrational fossil fuel-hating position–being “reported” by “news organizations” like the Associated Press as just an ordinary group of concerned citizens with legitimate concerns. It’s NOTHING of the sort…
Read More “New Coalition of Same Old Antis Opposes Atlantic Coast Pipeline”
Best of the Rest

Marcellus & Utica Shale Story Links: Fri, Jun 19, 2015
June 19, 2015June 19, 2015

The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading:
Read More “Marcellus & Utica Shale Story Links: Fri, Jun 19, 2015”
Energy Companies | Industrywide Issues | Litigation | Lycoming County | Pennsylvania | Range Resources Corp | Regulation

Range Fires Back: Proof We Didn’t Cause PA Methane Migration
June 18, 2015June 18, 2015

Yesterday MDN told you about the new, negative tone being set at the Pennsylvania Dept. of Environmental Protection by its new leader, Sec. John Quigley, by fining Range Resources for a case of methane migration (see PA DEP Slaps Range with Record $8.9M Fine for Methane Migration). Perhaps Quigley has adopted EPA Region 6 administrator Al Armendariz’s philosophy of making an example of one or two companies (see EPA Region 6 Administrator: Crucify Energy Companies). Quigley says Range did a sloppy cement job on a gas well they drilled in 2011 and has refused to correct the situation. Range immediately fired back, very loud and very clear, that water wells in that area had high levels of methane in them BEFORE any drilling took place–and Range has the documented pre-drilling tests to prove it…
Read More “Range Fires Back: Proof We Didn’t Cause PA Methane Migration”
Industrywide Issues | Jobs | Pennsylvania | Regulation | Statewide PA

Gov Wolf & Co Wipes Away 151K PA Jobs by Changing Formula
June 18, 2015June 18, 2015

Poof! Some 151,000 jobs that had been created by the Marcellus Shale industry, according to Pennsylvania officials, disappeared overnight. PA Gov. Tom Corbett’s administration (Republican), voted out of office last November, used to say (based on numbers from the PA Dept. of Labor and Industry) that the Marcellus Shale industry is responsible for creating 240,000 jobs in the state (see Hundreds of Thousands of Marcellus Drilling Jobs in PA). That number includes people in other industries that serve the Marcellus industry. PA Gov. Tom Wolf’s administration (Democrat) now comes along to say that number is bunkum. Wolf and his minions want to lower the public’s perception that the Mighty Marcellus is a jobs-creating engine like nothing ever seen in the state–so they’ve just arbitrarily wiped off 151,000 of those jobs by saying the way the number was originally calculated was wrong. They say the “real” number is more like 89,000. Welcome to Wonderland where you have your truth and I have my truth and the only casualty is THE truth…
Read More “Gov Wolf & Co Wipes Away 151K PA Jobs by Changing Formula”
Industrywide Issues | Lease & Royalty Payments | Pennsylvania | Regulation | Statewide PA

New Bill Pushes 12.5% Guaranteed Minimum Royalty for PA Landowners
June 18, 2015June 18, 2015

One of the big disappointments last year, for landowners, was the failure to pass House Bill (HB) 1684 which would clear up language from the Guaranteed Minimum Royalty Act of 1979. The GMRA of 1979 says landowners are supposed to get 12.5% minimum in royalties. Chesapeake (perhaps other drillers too) found loopholes and drove a truck through them, claiming marketing and pipeline transportation expenses that they deducted from royalties–leaving some landowners with checks for (literally) a few dollars (see Bradford County, PA Landowners Sue Chesapeake over Royalties). HB 1684 would have cleared up the language and ensured landowners get 12.5% as a minimum–but the bill was met with opposition from the drilling industry (see Rare Schism Between Landowners & Drillers over PA Royalty Law). The bill ultimately failed to get to the floor for a vote. But 2015 is a new year, and PA State Rep. Garth Everett, with the backing of the PA National Association of Royalty Owners (NARO), will introduce a brand new bill next week that is largely a reconstituted HB 1684. So far 35 members have signed on as co-sponsors. Everett and NARO are planning a “bill launch party” in the Capitol Rotunda for next Tuesday, June 23 at 1:30 pm. They want every single landowner who can to show up as a sign of support…
Read More “New Bill Pushes 12.5% Guaranteed Minimum Royalty for PA Landowners”
Economic Impact | Industrywide Issues | Jobs | Lease & Royalty Payments | Pennsylvania | Supply Chain | Susquehanna County

Drilling Slowdown Creates Domino Effect in Susquehanna County, PA
June 18, 2015June 18, 2015

Low natural gas prices and lack of pipelines is affecting more than just the drillers in Susquehanna County, PA–it’s also affecting landowners, gas workers, and the businesses that depend on all of the above. Drillers in northeastern PA (as well as elsewhere) are laying down their drilling rigs. Fewer rigs means fewer new wells being drilled, meaning no royalties for those landowners. And it means fewer jobs for workers, and less business for companies that provide goods and services to drillers, the people who work for them, and landowners with less disposable income. A TV station in NEPA shines a light on the situation in Susquehanna County…
Read More “Drilling Slowdown Creates Domino Effect in Susquehanna County, PA”
Energy Companies | Halcon Resources | Ohio | Trumbull County

False Alarm: Halcon Resources has NOT Resumed Utica Drilling
June 18, 2015June 18, 2015

In January, Halcon Resources said it was slashing its drilling budget and would do no drilling in the Ohio Utica in 2015 (see Halcon Resources: Slashes Drilling Budget 50%, No Utica for 2015). In February, Halcon CEO Floyd Wilson, famous for speaking his mind, responded to an analyst question about their plans for the Utica by joking (see Halcon CEO Floyd Wilson: “What’s the Utica?”). So imagine everyone’s surprise when the Ohio Dept. of Natural Resources (ODNR) released a report recently that listed a permit for a Halcon site in Trumbull County (the northern Utica where Wilson once said he wouldn’t drill any more sh***y wells) with a status of “DRILLING”. The Youngstown Business Journal understandably trumpeted this big news (see their story: Halcon Resumes Drilling in Trumbull County). Halcon was quick to respond. It seems that there is no active drilling at that site in Trumbull County–they wanted the permit re-issued just in case they may one day resume drilling. The designation of “DRILLING” in the ODNR report was inaccurate…
Read More “False Alarm: Halcon Resources has NOT Resumed Utica Drilling”
Bradford County | Economic Impact | Industrywide Issues | Jobs | Pennsylvania

NEPA Tungsten Plant Begins Converting Marcellus Gas into Hydrogen
June 18, 2015June 18, 2015

This is the story of how abundant and cheap Marcellus Shale gas is helping to secure the jobs of 550 people in Bradford County, PA, people who work in a business that has nothing to do with the Marcellus Shale industry. Yesterday, Global Tungsten & Powders Corp. in Towanda, PA held a ribbon cutting ceremony for a new piece of equipment at the company’s plant that will convert Marcellus Shale gas, extracted locally, into hydrogen used in enormous quantities at the plant. The Global Tungsten plant in Towanda is one of the country’s largest users of hydrogen (who knew?). The company uses hydrogen to manufacture tungsten products at the plant, including components for solid oxide fuel cells (i.e., big batteries). Until now, liquid hydrogen has had to be trucked to the plant daily, from hundreds (even thousands) of miles away. The new equipment unveiled yesterday, which will be owned and operated by Air Products, will provide 80-90% of the plant’s hydrogen needs. Just one more way this evil, nasty fossil fuel called Marcellus Shale gas is benefiting Pennsylvanians (jobs and economy) AND making the planet a better/safer/greener place to live…
Read More “NEPA Tungsten Plant Begins Converting Marcellus Gas into Hydrogen”
Energy Services | Industrywide Issues | Kinder Morgan | NGLs | Pipelines | Tennessee Gas Pipeline

KM’s SECOND Binding Open Season for Utica/Marcellus NGL Pipeline
June 18, 2015June 18, 2015

Last summer, in response to a reader’s query, MDN went nosing around to bring you the status of what had been called Kinder Morgan’s Y-Grade NGL pipeline from the Utica/Marcellus to the Gulf Coast. We found, at the time, the project is still very much alive (see Kinder Morgan Y-Grade NGL Pipeline from NE to SW Still Alive). We also learned at that time the name had been changed to be the Utica Marcellus Texas Pipeline (UMTP) Project. Kinder Morgan’s plan is to repurpose nearly 1,000 miles of existing Tennessee Gas Pipeline, reversing the flow to go from north to south, and changing the hydrocarbons in the pipeline to be NGLs. As we pointed out in December, that has some of the anti-pipeline kooks in Kentucky all riled up (see KY Antis Now Opposing Kinder Morgan Y-Grade NGL Pipeline). Yesterday Kinder Morgan announced a binding open season to sign up shippers for UMTP (see the announcement below). But wait a minute! KM ran an binding open season in January/February 2014. Must be they had no (or few) takers then. Will they get enough customers the second time around?…
Read More “KM’s SECOND Binding Open Season for Utica/Marcellus NGL Pipeline”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | NEXUS Pipeline | Ohio | Pipelines | Statewide OH

NEXUS Pipeline Files Draft Reports w/FERC, Rejects CORNy Re-Route
June 18, 2015June 18, 2015

Last Friday the NEXUS Gas Transmission pipeline, a $1.5-$2.0 billion natural gas pipeline that will carry Utica and Marcellus Shale gas spanning 11 counties in Ohio, 3 counties in Michigan, and eventually connect to the Dawn Energy Hub in Canada, filed a full set of twelve draft environmental Resource Reports with the Federal Energy Regulatory Commission (FERC). A summary of the filing (included below) shows there are six large customers for the pipeline in Ohio (gas processors, utilities and large industrial companies). In addition to information about who will use the pipeline and the economic benefits that will come from the pipeline, NEXUS also filed information on alternative routes for the pipeline. Of note, one alternative route, proposed by the Coalition to Reroute NEXUS (CORN, which we’ve dubbed CORNy), is flat out rejected by NEXUS. CORNy wants to move the pipeline away from the Canton-Akron area. NEXUS says that’s a bad idea, for lots of reasons…
Read More “NEXUS Pipeline Files Draft Reports w/FERC, Rejects CORNy Re-Route”
Delaware County (PA) | Industrywide Issues | Pennsylvania | Pipelines | Statewide PA | Washington County

Business & Labor Unions Join Forces to Promote Pipelines in PA
June 18, 2015June 18, 2015

You don’t normally think of local Chambers of Commerce (business owners) and labor unions (rank and file workers) as breaking bread together. And they NEVER commingle their membership roles in order to lobby local, state and federal authorities on policy and regulation. Until now, that is. In Pennsylvania, two Chambers of Commerce on opposite sides of the state, the Delaware County Chamber and the Washington County Chamber, along with two labor unions, the Laborers’ International Union of North America (LiUNA) with 25,000 members and the International Union of Operating Engineers (IUOE) Local 66 with 7,000 members, have all joined forces. And what has the power to cause management and labor to join forces? The Marcellus Shale. The four organizations together have formed the Pennsylvania Energy Infrastructure Alliance, a “broad-based coalition in support of timely approval for critical energy infrastructure in the Commonwealth.” The main focus of the Alliance is to promote the benefits and building of pipelines…
Read More “Business & Labor Unions Join Forces to Promote Pipelines in PA”
BG Group | Energy Companies | Industrywide Issues | M&A | Shell

Shell-BG Megamerger Approved by US Federal Trade Commission
June 18, 2015June 18, 2015

Well that was quick! On Tuesday Shell announced they’re received approval by the U.S. Federal Trade Commission to proceed with their buyout/takeover of BG, the former British Gas. You may recall we brought you the news about the Shell-BG deal in April, pointing out at the time the deal is mainly about LNG (see LNG Love Story: Shell Makes Play to Buy BG in $69.7B Megamerger). Getting approval from the FTC this fast is a good sign, according to Shell CEO Ben van Beurden. Shell needs to obtain approval from every country where BG does business–not just the U.S. According to Shell, they’re still on track to complete the merger in “early 2016″…
Read More “Shell-BG Megamerger Approved by US Federal Trade Commission”
Best of the Rest

Marcellus & Utica Shale Story Links: Thu, Jun 18, 2015
June 18, 2015June 18, 2015

The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading:
Read More “Marcellus & Utica Shale Story Links: Thu, Jun 18, 2015”
Energy Companies | Industrywide Issues | Lycoming County | Pennsylvania | Range Resources Corp | Regulation

PA DEP Slaps Range with Record $8.9M Fine for Methane Migration
June 17, 2015June 17, 2015

Last September Range Resources was assessed a then-new record high fine of $4.15 million for a series of leaking frack wastewater impoundments in southwestern Pennsylvania (see PA DEP Fines Range Resources $4.15M for Wastewater Impoundments). A short time later, in October 2014, EQT replaced Range as the “highest ever” fine when the Dept. of Environmental Protection (DEP) assessed EQT a $4.53 million fine for a leaky wastewater impoundment in northeastern PA, in Tioga County (see PA DEP Levies Biggest Fine Ever, $4.5M Against EQT). There’s a new mafia don, er a, “sheriff” in town–PennFuture DEP Secretary John Quigley–and he’s just slapped Range Resources with a new highest-ever fine nearly double EQT’s fine: $8.9 million. The offense? Methane migration from a well in Lycoming County, PA. The DEP says the Range well, drilled in 2011, has been leaking methane since at least 2013 (improperly cemented well casing) and the methane has “contaminated the groundwater-fed wells of private water supplies, and a nearby stream.” The DEP doesn’t say how many water wells have been affected nor which stream is affected…
Read More “PA DEP Slaps Range with Record $8.9M Fine for Methane Migration”
Industrywide Issues | Ohio | Statewide OH | Taxation

OH Utica Severance Tax Increase Dead for This Year’s Budget
June 17, 2015June 17, 2015

Once again Ohio Gov. John “foreigner hunter” Kasich will not get a huge hike in the Utica Shale severance tax. Originally Kasich had sought an increase to 2.75%. Then he got greedy and wanted it hiked to 6.5%. When he got resistance from that, he threatened that unnamed groups may push for a ballot initiative that would seek a 10% severance tax (see OH Gov Kasich the Bully: Accept My 6.5% Tax or Risk a 10%+ Tax). Kasich is determined to get a hike in the tax, but then reality set in. Utica drillers are idling rigs and slowing down in the Buckeye State. A big severance tax increase would accelerate that trend and Republicans know it. Yesterday leaders in both the Ohio Senate and House announced there will be no severance tax increase in this year’s budget–so it’s dead for another year. However, all parties continue to “sit at the table” and talk about a possible increase in the future…
Read More “OH Utica Severance Tax Increase Dead for This Year’s Budget”