Marcellus Drilling News

Energy Services | Industrywide Issues | Kinder Morgan | Pipelines | Regulation | Tennessee Gas Pipeline

Kinder Morgan Scores Important Victory in NH to Build NED Pipeline
July 1, 2015July 1, 2015

The first domino has fallen. Kinder Morgan won an important victory in New Hampshire with respect to building the Northeast Energy Direct (NED) pipeline project–an extension of the Tennessee Gas Pipeline from New York through Massachusetts into New Hampshire and back into Massachusetts. On Friday the staff of the NH Public Utilities Commission (PUC) signed off on a request by the state’s largest utility company, Liberty Utilities, to buy capacity from the new NED pipeline as it passes through the state. Because Liberty’s action will potentially affect ratepayers (some of the cost may be passed to utility customers), the PUC must approve it. Full approval for Liberty to contract for capacity on NED will happen later in July–but full approval is almost certainly a foregone conclusion because of this initial approval…
Read More “Kinder Morgan Scores Important Victory in NH to Build NED Pipeline”
Industrywide Issues | Pennsylvania | Statewide PA | Taxation

PA’s Partisan Gov Wolf Vetoes No-Severance-Tax State Budget
July 1, 2015July 1, 2015

Proving just how partisan (and mean spirited) the Democrats in Pennsylvania have become, every single Democrat senator voted against a Republican balanced budget bill yesterday (highly partisan, those Dems) and when the bill went to Gov. Tom “in over his head” Wolf, Wolf immediately vetoed the budget bill–the first time a sitting governor has vetoed an entire budget bill in 40 years. Tell us again, John Hanger, whose philosophy is “my way or the highway”? It’s certainly not the Republicans’ philosophy. Wolf and the Dems are playing a high stakes game of “chicken.” They are in the minority in PA and they want to see if they can bully, pressure, and otherwise force Republicans to tax the Marcellus Shale industry out of existence in the state. The Republicans, to their credit, are hanging tough. Unfortunately the Republicans don’t have enough of a majority to simply override Wolf’s childish veto–but give it time. Sooner or later, if they hang tough, some Democrats will cave and vote to override the veto…
Read More “PA’s Partisan Gov Wolf Vetoes No-Severance-Tax State Budget”
Columbia Pipeline Group | Energy Services | Industrywide Issues | Lewis County | Pipelines | West Virginia

Columbia Pipeline Does it Right Way: $10K Gift to WV Fire Academy
July 1, 2015July 1, 2015

Finally a case of what appears to us as not pipeline payola (buying support for a new pipeline project before it’s built or approved), but in fact a case of true community support for community support’s sake. Being a good neighbor. Columbia Pipeline Group (CPG), which operates a many hundreds of miles of pipelines in the northeast already, made a $10,000 donation to the West Virginia University Fire Service Extension/State Fire Training Academy in Weston, WV on Monday. Weston is located in Lewis County, WV, sort of in the center of the state. No new pipeline projects anywhere close. Congratulations to CPG for a selfless donation–perhaps the first true case we’ve seen!…
Read More “Columbia Pipeline Does it Right Way: $10K Gift to WV Fire Academy”
Industrywide Issues | Ohio | Pennsylvania | Research | Statewide OH | Statewide PA | Statewide WV | West Virginia

New EIA Monthly Report Breaks Out Natgas Production by PA/OH/WV
July 1, 2015July 1, 2015

Our favorite government agency, the U.S. Energy Information Administration (EIA), has just replaced a previous monthly report with a new report that will be of keen interest to MDN readers. It used to be that the EIA produced the Monthly Natural Gas Gross Production Report. That report is no more. Instead, it has been replaced by the Monthly Crude Oil and Natural Gas Production report. The old report tracked and reported natgas production by state/region for LA, NM, OK, TX, WY and the Federal Gulf of Mexico. Those locations were, traditionally, where the vast majority of natural gas was produced in the U.S. But with the shale revolution, that’s now changed–dramatically. In addition to reporting monthly natgas production by state for the traditional locations, the EIA is adding 10 new states to the monthly report: AR, CA, CO, KS, MT, ND, OH, PA, UT and WV. Yep–where the super producing shale plays are located, including PA, OH and WV where the Marcellus/Utica is located. What’s the difference between this new report (which we’ve included below) and the monthly Drilling Productivity Report (DPR) produced by the EIA?…
Read More “New EIA Monthly Report Breaks Out Natgas Production by PA/OH/WV”
Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

NY Landowners, Drilling Industry React to Cuomo’s Frack Ban
July 1, 2015July 1, 2015

Yesterday MDN brought you the news that the Dept. of Environmental Conservation (DEC) had finally issued a “Findings Statement” that provides the official rational, twisted as it is, for why New York is temporarily banning high volume fracking in the Empire State (see It’s Official: Cuomo Bans Economic Opportunity & Prosperity in NY). Organziations for both landowners (the Joint Landowners Coalition of New York) and the oil and gas industry (American Petroleum Institute New York) provided their reaction to this profoundly sad news…
Read More “NY Landowners, Drilling Industry React to Cuomo’s Frack Ban”
Hydraulic Fracturing | Industrywide Issues | Research

USGS: Marcellus/Utica Among Biggest Water Users in US Shale Plays
July 1, 2015July 1, 2015

The U.S. Geological Survey (USGS) is out with a new study on how much water is used to drill and frack shale wells across the United States. The report is titled “Hydraulic fracturing water use variability in the United States and potential environmental implications” and has been accepted for publication in the journal Water Resources Research. Sorry, we don’t have a full copy of the report, but we do have a summary of the report below which says that the heaviest water use is in shale plays like the Marcellus/Utica, which sits in an area with abundant water supplies (good for us). What the report fails to do is provide perspective–that the volume of water used in drilling and fracking shale wells is minuscule compared to the volumes used in electric power generation and agriculture. More water is used for golf courses than it is to drill shale wells! So while the study is no doubt interesting, it has (in our opinion) limited value…
Read More “USGS: Marcellus/Utica Among Biggest Water Users in US Shale Plays”
Anti-Drilling/Fossil Fuel | Electrical Generation | Industrywide Issues | Lackawanna County | Pennsylvania

MDN Interprets NEPA Editorial on Coal, Natgas, Electric Generation
July 1, 2015July 1, 2015

Sometimes you need a plain language guide to help you decipher the gobbledygook editorials issued by liberal newspapers. It’s like, what do they really mean? What are they trying to say? Why don’t they just use plain English to say what they mean? We spotted such an editorial in the Scranton Times-Tribune with respect to coal, natural gas, electric generation and so-called alternative energy sources, like wind. Below we’ve interpreted what the editorial writers really wanted to say in their otherwise indecipherable editorial…
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Best of the Rest

Marcellus & Utica Shale Story Links: Wed, Jul 1, 2015
July 1, 2015July 1, 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: Wed, Jul 1, 2015”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

It’s Official: Cuomo Bans Economic Opportunity & Prosperity in NY
June 30, 2015June 30, 2015

Let the lawsuits begin! Yesterday the anti-drilling, anti-fossil fuel head of the New York Dept. of Environmental Conservation (DEC), Joe Martens, did his master’s bidding (his master being Lord Andrew Cuomo, Earl of the Hamptons) by imposing an official, TEMPORARY (not permanent) ban on hydraulic fracturing in the Empire State. The document issued yesterday by Martens is called a Findings Statement (full copy below) and it provides the DEC’s official rationale for the action they are taking in not granting permits for high volume fracking in the state. News coverage is blaring the trumpets that New York has “banned” fracking. Well, yes, in a sense that’s true. But the implication is that it’s a permanent ban–which is not true. Far from it. Martens uses profoundly weak arguments in the Findings Statement to justify his political action. One of his central arguments is what fracking “may” do to water supplies. A few weeks ago the federal EPA, after four years of intense study, found fracking is perfectly safe for water supplies (see EPA Draft Report Says Fracking Doesn’t Pollute Groundwater Supplies). We’d be embarrassed to try and peddle this horse manure if we were Martens–but he’s shameless. One thing is for sure: landowners and their lawyers, who have had their property rights illegally stripped away by Cuomo and Martens, are reading the Findings Statement and preparing lawsuits even now…
Read More “It’s Official: Cuomo Bans Economic Opportunity & Prosperity in NY”
Energy Services | Industrywide Issues | Ohio | Pipelines | Rockies Express Pipeline | Statewide OH

REX Gets Ready to Ship 1.8 Bcf/d of Marcellus/Utica Gas to Midwest
June 30, 2015June 30, 2015

It takes a long time to turn a big ship around, like a cruise ship or an aircraft carrier. It also takes a long time to turn a big pipeline around–like the Rockies Express Pipeline (REX), which originates in Rio Blanco County, Colorado and sends gas to Monroe County, Ohio. In July 2013 MDN told you that REX was planning to reverse the flow for at least part of the pipeline to start sending Utica and Marcellus shale gas to the Midwest (see REX Reverses Pipeline Flow from OH for Mystery Utica Customer). It’s taken the last two years, but starting August 1 REX will begin to flow natural gas in the opposite direction–from Ohio to Indiana, Illinois and into Missouri–what is called the Zone 3 area of the REX pipeline. RBN Energy calls this a really big deal–one of the most significant events that will happen this year in the U.S. natural gas market. They’re not exaggerating…
Read More “REX Gets Ready to Ship 1.8 Bcf/d of Marcellus/Utica Gas to Midwest”
Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

Last Minute Change in PA Budget Stops DEP’s New Drilling Rules
June 30, 2015June 30, 2015

How can we put this gingerly? Pennsylvania Democrats (and Democrats in general) like to do the screwing, but they don’t like to get screwed. That about sums up what’s happening with the Pennsylvania budget and some last minute legislation slipped into a budget-related bill that will tie the PA Dept. of Environmental Protection’s hands on proposed new drilling rules. The 2012 Act 13 law required the Pennsylvania Dept. of Environmental Protection (DEP) to update sections of the older 1984 PA Oil & Gas Act (see Rewrite of 1984 PA Oil and Gas Act Underway). That process was pretty much done and dusted under PA Gov. Tom Corbett. But then Tom Wolf won the governor’s race and installed John Quigley to head up the DEP. Quigley re-opened a closed process to change drilling rules for both conventional and unconventional (shale) drillers (see PA DEP Sec Quigley Pulls a Fast One, Changes Drilling Rules). That is, Quigley did some screwing of the drilling industry. Over the weekend the PA House introduced and passed an amendment that would require the DEP to go back and start over with respect the rules they plan to adopt. That is, Quigley has now gotten screwed. And he doesn’t like it…
Read More “Last Minute Change in PA Budget Stops DEP’s New Drilling Rules”
Air Quality | Industrywide Issues | Litigation | Regulation

US Supreme Court Knocks Down Draconian EPA Emissions Rule
June 30, 2015June 30, 2015

Too little, too late is what sums up yesterday’s U.S. Supreme Court decision that slaps the federal Environmental Protection Agency (EPA) for not considering cost when implementing draconian new rules limiting certain emissions from coal-fired electric power plants. Many coal plants have already shut down and many more are in the process of shuttering–driven out of business by the EPA’s draconian (unlegislated) laws. The small victory is that it pushes back against an out-of-control Obama EPA–perhaps slowing them down just a bit. One analyst said the Supreme Court decision translates into a “big win” for natural gas. How? Because the draconian new rules won’t go into effect right away, that means natural gas will continue to pick up momentum as the best alternative to coal, shutting out solar and wind power as alternatives. Nothing against solar and wind (we love them both), but they’re WAY more expensive than natural gas–and last time we checked, we still live in sort-of free country that sort-of uses capitalism and sort-of has free choice when it comes to power. Which is sort-of good news for natural gas…
Read More “US Supreme Court Knocks Down Draconian EPA Emissions Rule”
Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

Quigley Not Just Creating New Registry, He’s Dumping FracFocus
June 30, 2015June 30, 2015

Two weeks ago MDN told you that the PA PennFuture Sec. of the Dept. of Environmental Protection, John Quigley, has decided he wants to start his own version of FracFocus in Pennsylvania (see PA DEP Sec Quigley Creating His Own FracFocus; SRBC in Crosshairs). What we didn’t know or understand at the time is that Sec. Quigley, who continues to be antagonistic toward the shale industry, isn’t just creating a PA version of FracFocus–he now arrogantly intends to dump PA’s participation in FracFocus…
Read More “Quigley Not Just Creating New Registry, He’s Dumping FracFocus”
Electrical Generation | Industrywide Issues | Maryland | Statewide MD

New Natgas-Powered Electric Plant Goes Online in…Maryland?
June 30, 2015June 30, 2015

Maryland, the state that recently banned fracking for another two years (see Maryland’s Pusillanimous Gov Allows Frack Moratorium to Become Law), has a brand new electric generation plant providing residents with 120 megawatts of electricity (powering 120,000 homes) in Harford County. The new electric plant is powered by fracked shale gas. The new Exelon Generation 120 megawatt Perryman 6 natural gas power generating unit began commercial operation on Sunday, June 28. Exelon built the plant to cut down on emissions–providing Maryland with “greener” electricity. And yet the state bans fracking. Anyone else see what a big, stinking pile of hypocrisy that is? Below are details on the new Exelon Perryman project…
Read More “New Natgas-Powered Electric Plant Goes Online in…Maryland?”
Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Statewide PA | Williams

More Pipeline Payola: Williams Doles Out $2.5M in PA Grants
June 30, 2015June 30, 2015

We won’t harp yet again about how we feel about paying local (very worthy) groups and organizations money to support your pipeline project BEFORE it’s approved and built (cough *borderline sleazy* cough). We’ll just bring you the news that Williams has seen fit to dole out $2.5 million to 17 Conservation Fund projects in Pennsylvania. A spoonful of $ugar to help the Atlantic Sunrise Pipeline medicine go down–in a most delightful way. (Note that we think the Atlantic Sunrise is a great project and worthy on its own, without need for corporate bribes to hush up local opposition.) Here’s the details of which projects in PA got funded, and where…
Read More “More Pipeline Payola: Williams Doles Out $2.5M in PA Grants”
Energy Companies | Industrywide Issues | M&A | Penn Virginia Corporation

Major Investor Tells Penn Virginia to Take BP’s Money and Run
June 30, 2015June 30, 2015

Last week MDN told you that vile big money investor George Soros has finally forced Penn Virginia Corp.–a driller for which he owns 9.1% of the shares, likely the biggest single outside investor–to consider offers to sell itself. BP has made such an offer (see BP Makes Offer to Buy Penn Virginia, Other Majors Interested Too). Rumor has it that Penn Virginia rejected BP’s offer as too low and is holding out for more. That doesn’t sit well with another shark, er a, big money investor in the company, Lone Star Value Management, which owns 2 million shares of Penn Virginia (2.8%). In a press release, Lone Star essentially asks Penn Virginia if they’re nuts. Lone Star points out the BP offer, if it is what is rumored, is 80% above where the stock has been bumping along. Cha-ching! Lone Star is seeing big bucks swimming before their eyes and they’re hungry for it…
Read More “Major Investor Tells Penn Virginia to Take BP’s Money and Run”