Marcellus Drilling News

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

NH Gov Hassan Asks FERC to Schedule More Hearings for KM Pipeline
July 17, 2015July 17, 2015

New Hampshire Gov. Maggie Hassan seems to be playing both sides of the fence in the debate to bring cheap, abundant Marcellus Shale gas to New England to help relieve sky-high electric and natural gas prices in the region–particularly in the winter months. Hassan is one of six New England governors who previously backed the concept of a new natural gas pipeline to the region (see Blue State Blues: 6 New England States Want New Natgas Pipeline). Yet lately, Hassan, one of the five Democrat governors supporting a pipeline, seems to be backing away from the concept and calling on Kinder Morgan with its proposed Northeast Energy Direct (NED) pipeline plan to bend over backwards, sideways and any which way it can to please her lib constituents. The latest in her escalating rhetoric is a letter sent Wednesday to the Federal Energy Regulatory Commission (FERC) asking them to schedule more than just three scoping hearings. As we’ve often commented, anti-drilling nutters need cameras and open forums to feel good about themselves. They parade and preen and behave in the wackiest ways when they know a camera and microphone are present. Hassan wants to provide more such opportunities for her supporters…
Read More “NH Gov Hassan Asks FERC to Schedule More Hearings for KM Pipeline”
Hydraulic Fracturing | Industrywide Issues | Ohio | Regulation | Statewide OH

Ohio DNR Enacts Expensive New Utica/Horizontal Drilling Rules
July 17, 2015July 17, 2015

Yesterday the Ohio Dept. of Natural Resources (ODNR) implemented new horizontal drilling rules that regulate the construction of horizontal well pad sites for Utica Shale and other shale drilling. The new rules require drillers to first submit a detailed well pad site plan, certified by a professional engineer, and then the plan will be reviewed by the ODNR before permits are issued. The ODNR claims the new requirements (full copy below) are “the most comprehensive and proactive horizontal well pad regulations in the country.” Translation: It’s going to cost Utica drillers more money to drill in the Buckeye State starting today…
Read More “Ohio DNR Enacts Expensive New Utica/Horizontal Drilling Rules”
Belmont County | Carroll County | Columbiana County | Energy Services | Industrywide Issues | Jefferson County (OH) | Litigation | Monroe County | Ohio | Pipelines | Spectra Energy

Spectra’s OPEN Ohio Pipeline on Track to be Done by End of 2015
July 17, 2015July 17, 2015

Spectra Energy announced a new natural gas pipeline in Ohio called the Ohio Pipeline Energy Network, or OPEN, way back in December 2011. OPEN is an interesting project because it will build 76 miles of new pipeline running through Belmont, Columbiana, Carroll, Jefferson and Monroe counties that will connect to the Texas Eastern Pipeline, and then reverses the flow on the Texas Eastern to carry Marcellus and Utica Shale gas from eastern Ohio to the Gulf Coast. The Texas Eastern will become a bi-directional pipeline, sometimes bringing gas north from the Gulf, other times sending it to the south to the Gulf. Spectra filed their official application with the Federal Energy Regulatory Commission (FERC) in February 2014 (see Spectra Energy Files Formal Request with FERC for OPEN Pipeline). FERC granted its blessing in December 2014 (see FERC Approves OPEN Pipeline in Eastern OH, Gas Goes to Gulf Coast). Since that time, a few Ohio Landowners filed a lawsuit asking an Ohio court to stop the OPEN pipeline from claiming eminent domain (see OH Landowners ask Court to Stop OPEN Pipeline Eminent Domain). Apparently nothing has come from that lawsuit because OPEN is getting built, right on schedule with plans to be completed by the end of this year…
Read More “Spectra’s OPEN Ohio Pipeline on Track to be Done by End of 2015”
Bradford County | Health Impacts | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Research | Susquehanna County | Wayne County

Devastating Critique of “Study” Linking Fracking to Health Issues
July 17, 2015July 17, 2015

Yesterday MDN told you about a new “study” that reportedly links the presence of fracking with an increase in hospital visits for serious health issues, like heart conditions (see New Study Claims Marcellus Drilling Causes Serious Health Issues). We did a fast read of the research and explained our concerns about it, including the statement by the authors of the study themselves who admit the study doesn’t actually prove a thing. MDN friend Nicole Jacobs at Energy in Depth has done a deep dive and provides the following devastating critique of that study, including unearthing a video by one of the study’s authors which shows her as a full-throated anti-driller. That is, this “study” was a sham from the beginning, which was kind of our gut instinct when we spotted it…
Read More “Devastating Critique of “Study” Linking Fracking to Health Issues”
Industrywide Issues | Research | Wastewater

New EPA Rule Prevents Sewage Plants from Treating Frack Wastewater
July 17, 2015July 17, 2015

The federal Environmental Protection Agency (EPA), which we’ve longed called a rogue agency (it is), is about to issue a new “rule” (i.e. unlegislated law) that prevents municipal sewage treatment plants from accepting untreated frack wastewater. It is the one EPA rule in recent memory that we can support. Of course the rule won’t change a thing. There are no municipal sewage treatment plants accepting untreated frack wastewater anywhere in the United States. It was happening in Pennsylvania back in 2011, but then-Sec. of the Dept. of Environment Protection for PA, Mike Krancer (a Republican), put a stop to it (see PA DEP, Marcellus Shale Coalition Admit Drilling Wastewater Likely Contaminating Drinking Water). Since that time there have been no sewage plants accepting frack wastewater–which proves the states are quite capable of policing such issues on their own. However, because it theoretically could happen, it’s a talking point for anti-drillers and their campaign to, irrationally, eliminate all fossil fuels, except the ones they use. Since there’s no federal law or rule against sewage treatment plants from accepting frack waste, the EPA is about to issue a new rule that officially ensures it never happens again (copy of the proposed rule below). Not wanting to let this momentous occasion go to waste, the anti-drilling zealots at so-called Environment America issued a press release congratulating the EPA (and themselves) for this new rule…
Read More “New EPA Rule Prevents Sewage Plants from Treating Frack Wastewater”
Industrywide Issues | Monongalia County | Sand/Proppant | West Virginia

DustPRO’s Innovative New Solution to Improve Frac Sand Safety in WV
July 17, 2015July 17, 2015

Preferred Technology, headquartered in Radnor, PA (near Philadelphia) has created a cool new product/technology called DustPRO. The new DustPRO coats frac sand with–something, not sure what–that helps the teeny tiny particles of sand behave and not get airborne where they can become a health hazard. Preferred/DustPRO announced yesterday the results of their very first application unit installed in the Marcellus/Utica in Morgantown, WV–and the results are very good indeed…
Read More “DustPRO’s Innovative New Solution to Improve Frac Sand Safety in WV”
Energy Companies | Energy Services | Hilcorp Energy | Kinder Morgan

Big Oil & Gas Money Flows to Jeb Bush Campaign, Disappointingly
July 17, 2015July 17, 2015

We promise not to wade too far in to presidential politics this year and next. But when the race to replace Obama–and reverse his disastrous decisions–impacts the oil and gas space, we may have a thing or two to say. Like today when we read that big money Texas oil billionaires like Boone Pickens, Hilcorp Energy Co. founder Jeffery Hildebrand and Richard Kinder of Kinder Morgan are financially backing Jeb Bush–a major disappointment in our book. Jeb is a RINO–we’ll NEVER swing a lever for him, even if he’s the Republican Party pick for 2016…
Read More “Big Oil & Gas Money Flows to Jeb Bush Campaign, Disappointingly”
Best of the Rest

Marcellus & Utica Shale Story Links: Fri, Jul 17, 2015
July 17, 2015July 17, 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, Jul 17, 2015”
Bradford County | Health Impacts | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Research | Susquehanna County | Wayne County

New Study Claims Marcellus Drilling Causes Serious Health Issues
July 16, 2015July 16, 2015

A new research study appearing in an online “journal” with very low standards, PLOS ONE, claims that hydraulic fracturing leads to an increase in hospitalization rates in the Marcellus Shale region. The research study, titled “Unconventional Gas and Oil Drilling Is Associated with Increased Hospital Utilization Rates” (full copy embedded below) on the surface appears to contain damning evidence. Researchers from the University of Pennsylvania and Columbia University looked at hospitalization records for three northeastern Pennsylvania counties from 2007-2011–Bradford, Susquehanna and Wayne. Both Bradford and Susquehanna counties have seen a huge amount of shale drilling over that period. Wayne County, on the other hand, has seen no shale drilling because of the intransigence of the Delaware River Basin Commission and their ongoing frack ban. The researchers say that people in Bradford and Susquehanna counties go to the hospital for serious heart conditions at a rate 27% higher than those in Wayne County. Ergo, there is a connection between fracking and health issues. We are fully in favor of rigorous academic research into issues like this one. But a few things bother us about this latest “fracking kills” study…
Read More “New Study Claims Marcellus Drilling Causes Serious Health Issues”
Antero Resources | Energy Companies

Antero Hits 1.5 Bcf/d in 2Q15, Drilling 1st WV Utica Well in 3Q15
July 16, 2015July 16, 2015

Antero Resources released an operations update for the second quarter of 2015–and what a great update! Antero reports hitting a net daily production of 1,484 million cubic feet equivalent per day (or 1.5 billion cubic feet/day) in 2Q15–a 67% increase over 2Q14. During the last three months Antero drilled and completed 13 Marcellus Shale wells with an average lateral distance of 8,300 feet, and 10 Utica Shale wells with an average lateral of 10,600 feet. The company picked up another 4,400 acres of Marcellus/Utica Shale leases in 2Q15 in “liquids rich” Tyler County, WV, giving them another 67 Utica drilling locations–adding to the 1,900 Utica drilling locations they have on 181,000 acres of leases they own in WV and PA. Antero says they will spud (begin drilling) their very first WV Utica Shale well in Tyler County during the third quarter of this year. Below is the full update, followed by their latest PowerPoint presentation for July with lots of great charts, graphs and maps…
Read More “Antero Hits 1.5 Bcf/d in 2Q15, Drilling 1st WV Utica Well in 3Q15”
CNG/LNG | Energy Companies | Energy Services | Exporting | Industrywide Issues | Kinder Morgan | Shell

KM Buys Shell’s Share in Elba LNG Export Plant, Marcellus Exports?
July 16, 2015July 16, 2015

Kinder Morgan, the country’s largest midstream/pipeline company, announced yesterday they are buying out Shell’s share of a joint venture in building an LNG (liquefied natural gas) export facility at the existing LNG import facility on Elba Island, Georgia–near Savannah. Currently Kinder owns 51% of the Elba Island LNG export project and Shell owns 49%. Kinder will now own 100% of the project after they pay Shell $630 million. Depending on how fast the Federal Energy Regulatory Commission (FERC) acts, Kinder believes construction will begin by the end of this year an LNG exports will begin “in late 2017.” What does this have to do with Marcellus/Utica? Maybe nothing, but we suspect something. Kinder’s arch rival Williams owns the mighty Transco pipeline that connects, via the Elba Express pipeline, to the LNG facility. Currently Elba Island imports LNG. However, Williams has been on a mission to send Marcellus gas south–including to Georgia (see Marcellus Gas Heading to Georgia via Transco Pipeline). We don’t think it’s much of a stretch that Marcellus Shale gas, via the Transco, will be at least some of, if not the primary, source for gas exported from the Elba facility…
Read More “KM Buys Shell’s Share in Elba LNG Export Plant, Marcellus Exports?”
Belmont County | Housing | Industrywide Issues | Monroe County | Ohio

RV Parks Pop Up in Ohio Valley for “Transient” Shale Workers
July 16, 2015July 16, 2015

Although drilling activity has slowed in many locations in the Marcellus/Utica Shale region, in some places it just keeps booming. Like Belmont and Monroe counties in Ohio. How do we know? Just take a look at the rise of “Oil City” located right next to the Ohio Valley Mall in St. Clairsville (Belmont County), OH. Oil City has 120 RVs and campers–all of them workers in the Utica and Marcellus gas fields. They are “transients” in the sense that new workers come in as other workers leave. Some are even from (gasp) “foreign” locations like Texas and Oklahoma (see OH Gov. Kasich Continues Trash Talk Out-of-State Workers). The words transient and foreigner are used by some as a pejorative to denigrate hard-working oilfield workers, blaming them for rowdiness and even for spreading STDs (see Is There a Link Between Fracking & STDs in Ohio?). How are oilfield transients perceived by the locals in the Ohio Valley area? A Monroe County official said this about the 350 transient oilfield workers living in RV parks in his county: “We’ve received little to no negative feedback. Most of them seem to work long hours, so they aren’t around all that much. They fit in pretty well.” So much for those who object to “foreigners” and “transients”…
Read More “RV Parks Pop Up in Ohio Valley for “Transient” Shale Workers”
Anadarko | Anti-Drilling/Fossil Fuel | Energy Companies | Industrywide Issues | Lycoming County | Pennsylvania | Regulation | Southwestern Energy

Antis Ask PA Gov Wolf to Stop New Drilling in Loyalsock Forest
July 16, 2015July 16, 2015

Representatives from a dozen far-left anti-fossil fuel groups sent a letter to Pennsylvania Gov. Tom Wolf on Tuesday asking him to illegally prevent drilling in the Loyalsock State Forest–where the mineral rights are owned by private individuals and not the state. Groups like PennFuture (most of whose employees now work in the Wolf Administration), the Sierra Clubbers and the League of [Liberal Democrat] Women Voters are signatories to the letter urging Wolf to wave his magic wand and prevent drilling in the Loyalsock. Of course their pleas and demands ignore the fact that drilling is already happening in many state forests–INCLUDING Loyalsock. Their objection is to the addition of more drilling in the Clarence Moore Lands area of the Loyalsock…
Read More “Antis Ask PA Gov Wolf to Stop New Drilling in Loyalsock Forest”
Energy Companies | Penn Virginia Corporation

Penn Virginia Sells E TX Assets for $75M – Avoiding Soros?
July 16, 2015July 16, 2015

Although headquartered in Radnor, Pennsylvania (near Philadelphia), Penn Virginia Corporation is an oil and gas driller with only a small presence in the Marcellus Shale: 21,700 net acres with no drilled wells. They concentrate on oil drilling the Texas Eagle Ford Shale play. MDN told you in March that Penn Virginia’s top stockholder, the vile corporate raider George Soros, forced them to put themselves up for sale so George can line his pockets with more cash (see George Soros Finally Bullies Penn Virginia into Selling Itself). The company got an offer from BP, but rejected it as too low, just last month (see BP Makes Offer to Buy Penn Virginia, Other Majors Interested Too). Another major investor, Lone Star Value Management, told Penn Virginia to take BP’s money, but so far they haven’t (see Major Investor Tells Penn Virginia to Take BP’s Money and Run). Amidst all of this turmoil Penn Virginia announced yesterday they’ve sold some of their East Texas “assets”–acreage and operating wells–to an “undisclosed buyer” for $75 million…
Read More “Penn Virginia Sells E TX Assets for $75M – Avoiding Soros?”
Alpha Natural Resources | Energy Companies

Rumor Mill: Alpha Natural Res. to File for Bankruptcy Next Month
July 16, 2015July 16, 2015

Just a few weeks ago MDN brought you the news that coal company Alpha Natural Resources is expanding their Marcellus Shale operation and would begin drilling within the next 30 days in the Marcellus Shale in Greene County, PA (see Alpha Natural Res. Expands in Marcellus, Drilling Begins in 30d). Was that bluster? Yesterday the Wall Street Journal reported that Alpha is in talks to get financing for filing for bankruptcy next month…
Read More “Rumor Mill: Alpha Natural Res. to File for Bankruptcy Next Month”
Blue Racer Midstream | Energy Services

Blue Racer Midstream Looks to Raise Another $300M from IOUs
July 16, 2015July 16, 2015

Last November Blue Racer Midstream–the pipeline and processing plant company formed in 2012 as a joint venture between Caiman Energy II and Dominion and focused totally on the Marcellus and Utica Shale region–floated IOUs (called senior notes) due and payable in 2022 for $550 million. Must be nice to write out an IOU and get big bucks. Blue Racer is back for more. The company announced yesterday they’re floating another round of IOUs due payable in 2022 in an effort to raise another $300 million…
Read More “Blue Racer Midstream Looks to Raise Another $300M from IOUs”