Marcellus Drilling News

Industrywide Issues | Pennsylvania | Regulation | Research | Statewide PA

3rd SRBC Report: Marcellus Drilling Doesn’t Affect Water Quality
July 6, 2015July 6, 2015

The Susquehanna River Basin Commission (SRBC), charged with protecting and managing the water resources in the Susquehanna River Basin, continues to perform its duty with distinction (unlike another commission with a similar name nearby that fails miserably to perform its duties). In 2010 the SRBC began collecting the data through a state-of-the-art Remote Water Quality Monitoring Network (RWQMN). Part of the remit in that effort is to determine whether or not Marcellus Shale drilling is having an effect on the quality of water in rivers and streams in the SRBC region. Two prior reports issued by the SRBC had shown no impact on the water quality of rivers and streams from drilling. Last week the SRBC delivered its third such report (full copy below). It is the most comprehensive study to date, covering data collected from 2010-2013. And guess what? The new report shows that Marcellus Shale drilling has not impacted local rivers and streams. Period. End of story. So now we have both the federal government, via the EPA, saying fracking doesn’t harm water supplies, and the SRBC saying the same thing. And the politicians in New York State ban fracking because of “maybes” and “mights” and “possibles”–all while real data from real drilling shows shale drilling does not harm the environment–not in the way claimed by NY political charlatans. Here’s what the SRBC said in releasing their latest report on water quality in the Marcellus region…
Read More “3rd SRBC Report: Marcellus Drilling Doesn’t Affect Water Quality”
Energy Services | Energy Transfer Partners | Industrywide Issues | M&A | Williams

Williams Continues to Resist ET Offer, Talks with Other Suitors
July 6, 2015July 6, 2015

An update on the potentially hostile takeover of Williams Companies by Energy Transfer Equity (see Energy Transfer Makes “Indecent Proposal” to Buy Williams for $48B). Williams is trying to get Energy Transfer CEO Kelcy Warren to sign a “standstill” clause before giving Warren access to Williams’ books. Such a clause would restrict Warren from buying shares of stock in Williams, lobbying investors and nominating his own candidates to the Williams board of directors–at least until a deal is cut. Warren is, so far, resisting and keeping up the pressure that he will move in a hostile manner to take over the company if they don’t cut a deal with him asap. This just in: Williams is now actively shopping itself and has “reached out” to more than 15 potential buyers, two of which have signed the standstill agreement and are, right now, poring over Williams’ books…
Read More “Williams Continues to Resist ET Offer, Talks with Other Suitors”
Bradford County | Chesapeake Energy | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation | Pennsylvania | Regulation

Chesapeake Energy’s Theft of PA Landowner’s Royalties
July 6, 2015July 6, 2015

It’s no wonder Pennsylvania landowners are up in arms over their treatment by Chesapeake Energy. Two weeks ago MDN told you about a new bill, HB 1391, that will ensure Pennsylvania landowners receive a minimum 12.5% in royalties for any gas or oil taken from their land (see New Bill HB 1391 Will Guarantee PA Landowners 12.5% Royalties). The reason such a bill is necessary is because landowners are being robbed by some (not all) drillers who are deducting certain “post production” expenses from royalty checks–essentially stealing money that belongs to landowners. Here is a perfect example from Bradford County, PA–the most drilled Marcellus county in the state…
Read More “Chesapeake Energy’s Theft of PA Landowner’s Royalties”
Air Quality | Industrywide Issues | Lycoming County | Pennsylvania | Research | Statewide PA

“Researchers” Take to the Sky to Locate Marcellus Methane Leaks
July 6, 2015July 6, 2015

Tower: “Global Warming Nutjob One–you’re cleared for takeoff on runway three.” GWNO: “Roger. Global Warming Nutjob One is taxiing and will takeoff from runway three. Have a nice, carbon-free day Tower.” Tower: “Er, thanks, we think.” As the Twin Otter airplane takes off into the sunrise, it burns copious amounts of fossil fuels and belches carbon like a dragon as it heads off to monitor whether a teeny tiny amount of methane (natural gas) is leaking from Marcellus Shale drilling sites. Anyone else see the irony here? The Philadelphia Inquirer has written an (article? propaganda piece? promotional advertisement?) about a “research” project under way between Penn State, University of Colorado and the National Oceanic and Atmospheric Administration (NOAA) to fly over Marcellus Shale drill sites in Pennsylvania to see if they can catch drillers in the act of leaking methane…
Read More ““Researchers” Take to the Sky to Locate Marcellus Methane Leaks”
Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Energy Services | Industrywide Issues | Pipelines

Eureka Hunter Pipes Hits 700 Mmcf/d, MHR Still Looking to Sell It
July 6, 2015July 6, 2015

Apparently looking to pump up the value and sex appeal of one of its major assets, this morning Magnum Hunter Resources (MHR) issued a press release about its pipeline subsidiary Eureka Hunter calling attention to the news that the midstream operation has increased its throughput to an average of 700 million cubic feet of natural gas per day (700 Mmcf/d, or put another way, 700,000 million Btus, or 700,000 MMBtus). The last time MHR issued a press release about the throughput of Eureka Hunter was in March, when it had achieved an average of 623 Mmcf/d (see Eureka Hunter Pipeline Volume Continues to Expand, now 623 Mmcf/d). Just two weeks ago, facing a cash crunch, MHR announced they are looking to sell 100% of their stake in the Eurkea Hunter subsidiary (see Magnum Hunter Cuts Deal to Sell Eureka Hunter & 2 New JVs). While hitting 700 Mmcf/d is certainly a noteworthy milestone, today’s press release has the look and feel of publicity meant to influence investors rather than news meant to inform…
Read More “Eureka Hunter Pipes Hits 700 Mmcf/d, MHR Still Looking to Sell It”
Anti-Drilling/Fossil Fuel | Cuyahoga County | Industrywide Issues | Litigation | Ohio | Regulation

The Mad Moms of Broadview Heights Remain Mad over Tossed Lawsuit
July 6, 2015July 6, 2015

The Mad Moms of Broadview Heights, OH (a suburb of Cleveland) say they’re “not going away” when it comes to opposing fossil fuels in their neighborhood. MADION (Mothers Against Drilling in Our Neighborhood) are appealing a tossed-out lawsuit filed by the group following a defeat handed to them by the Ohio Supreme Court. In March, the Ohio Supreme Court ruled a 2012 so-called Community Bill of Rights law adopted by Broadview Heights that prohibits drilling is unconstitutional (see OH Antis Handed Crushing Defeat in Broadview Hghts Home Rule Case). That didn’t sit well with the (stark raving) Mad Moms (see Broadview Heights, OH Moms: Don’t Frack With Us). The Mad Moms filed a new lawsuit to stop the drilling. Last week Cuyahoga County Common Pleas Judge Timothy McCormick tossed the new lawsuit citing the Supreme Court decision. The Mad Moms plan to appeal Judge McCormick’s decision…
Read More “The Mad Moms of Broadview Heights Remain Mad over Tossed Lawsuit”
Ohio | Statewide OH

OH Clinton Sandstone on the Radar for Horizontal Drilling & Fracking
July 6, 2015July 6, 2015

The Clinton Sandstone formation has been drilled in Ohio since the late 1800s–for both oil and natural gas. Sandstone is a tightly packed rock like shale, rock that requires fracking in order to effectively release the oil and gas trapped in it. Until recently, the Clinton was drilled vertically. However, some drillers are now experimenting with horizontal drilling and fracking in the Clinton in hopes of reactivating old wells, and establishing new wells. According to a new fact sheet just published by the Ohio Dept. of Natural Resources (ODNR) about the Clinton Sandstone, “…after recent successes with horizontal drilling in the development of shale gas plays, operators began applying this method to “Clinton” fields in 2014. This new technology could lead to additional development of some older “Clinton” oil-and-gas fields and hold potential for discovery of new fields. If horizontal drilling proves to be profitable, Ohio could see yet another spike in “Clinton” production.” Cool. Here’s a copy of the ODNR’s Clinton Sandstone fact sheet detailing the history–and possible future–of the Clinton…
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Best of the Rest

Marcellus & Utica Shale Story Links: Mon, Jul 6, 2015
July 6, 2015July 6, 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: Mon, Jul 6, 2015”
Alpha Natural Resources | Energy Companies | Greene County (PA) | Pennsylvania

Alpha Natural Res. Expands in Marcellus, Drilling Begins in 30d
July 2, 2015July 2, 2015

Coal company Alpha Natural Resources is expanding their operation in the Marcellus Shale natural gas business. Yesterday Alpha announced its wholly-owned subsidiary, Pennsylvania Services Corporation (PSC), has purchased back a 50% interest in its natural gas exploration and production joint venture, Pennsylvania Land Resources Holding Company (PLR) from joint venture partner EDF Trading Resources (EDFTR) for $126 million. Alpha’s PSC subsidiary now becomes the the sole owner and operator of the PLR joint venture (which is no longer joint). Lots of acronyms of subsidiaries owning subsidiaries! Bottom line: Alpha can now control and expand a highly economic natural gas development program with 25,000+ net acres AND associated infrastructure–in the Marcellus Shale. Alpha’s EVP Brian Sullivan says they plan to begin drilling in their Marcellus acreage position (in Greene County, PA) in the next 30 days…
Read More “Alpha Natural Res. Expands in Marcellus, Drilling Begins in 30d”
Dominion Energy | Electrical Generation | Energy Services | Industrywide Issues | Pipelines | Statewide VA | Virginia

Dominion to Build Electric Plant in S VA Powered by Marcellus Gas
July 2, 2015June 22, 2016

Dominion, a large utility and midstream (i.e. pipeline) company operating in 13 states, including the Marcellus/Utica region, yesterday filed a request with the Virginia State Corporate Commission (SCC) to build a $1.3 billion state-of-the-art natural gas-fired electric generating station in Greensville County, VA. The new power station will generate 1,600 megawatts–enough electricity to power 400,000 homes. Greensville County sits along the southern border of Virginia–sharing a border with North Carolina. Oh, and guess which pipeline flowing boatloads of cheap, abundant, clean-burning Marcellus Shale gas is due to cross right through the middle of Greensville County? Yep–Dominion’s 550-mile, $5 billion Atlantic Coast Pipeline project that will run from West Virginia through to North Carolina…
Read More “Dominion to Build Electric Plant in S VA Powered by Marcellus Gas”
Coterra Energy (Cabot O&G) | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation | Pennsylvania | Statewide PA | Susquehanna County

PA Court Decision: Leases Don’t Go on Pause When Landowners Sue
July 2, 2015July 2, 2015

Put on your hip boots, we have some deep waters to wade through with respect to an important court decision in Pennsylvania that affects landowners and drillers. Last October MDN told you about an important lawsuit that went to the Pennsylvania Supreme Court, a case called Harrison v Cabot Oil & Gas (see Important Landowner/Driller Case Heads to PA Supreme Court). In brief, Susquehanna County, PA landowners Wayne and Mary Harrison signed a lease with Cabot Oil & Gas for $100 per acre and 12.5% royalties in 2010. Learning that others in their area got better deals and feeling they were not only hoodwinked but pressured into signing, they sued Cabot halfway through the lease (before any drilling was done) to dissolve the lease. Ultimately that lawsuit was decided in favor of Cabot. But by the time the lawsuit was done and dusted, the original 5-year term had expired without Cabot drilling. The Harrisons claimed since Cabot hadn’t drilled, the lease is now over with. Cabot said the lease went on “pause” when the Harrison’s sued–you can’t very well drill with an active lawsuit. This “lease on pause” case was appealed all the way to the Supreme Court in PA, and in February the Supreme Court ruled that just because there is ongoing litigation, Cabot didn’t have the presumption that the lease was paused (see Cabot O&G Loses PA Supreme Court Case to Extend Lease). That is, Cabot lost the case. But it was referred back to the Third Circuit Court of Appeals for more work before a final final ruling. We now have that final final ruling…
Read More “PA Court Decision: Leases Don’t Go on Pause When Landowners Sue”
Beaver County | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Processing Plants | Shell

Shell Greenlights Offshore Platform – Good Sign for PA Cracker?
July 2, 2015July 2, 2015

Time, once again, to haul out the tea leaves to see if there’s anything we can divine from an announcement yesterday by Shell that they’ve made a “final investment decision” (or FID) to move forward with a multi-billion dollar project to build a new deep-water offshore drilling platform in the Gulf of Mexico. What in the world does that have to do with the Marcellus/Utica? Good question! Let us read the tea leaves and connect some dots for you…
Read More “Shell Greenlights Offshore Platform – Good Sign for PA Cracker?”
Guest Post | Industrywide Issues | Pennsylvania | Statewide PA | Taxation

Guest Post: The Political Disaster that is Gov. Wolf’s PA Severance Tax Proposal
July 2, 2015July 2, 2015

MDN friend Charlie Schliebs, managing director of Stone Pier Capital Advisors in Pittsburgh, sent along a copy of his firm’s latest newsletter yesterday. In it, Charlie has penned a superb article about the PA Gov. Tom Wolf administration’s current disaster with respect to the state budget (and Wolf’s demand for a high severance tax). As MDN reported yesterday, Wolf did something no governor has done for 40 years–he vetoed the entire budget (see PA’s Partisan Gov Wolf Vetoes No-Severance-Tax State Budget). Let’s put Wolf’s veto in perspective. He turned down, wholesale, a balanced budget that raises education funding (for the chil’ren) all while holding the line on tax increases. Instead, Wolf chose to shut down the PA state government. Why? Because he wants a nosebleed high tax on Marcellus Shale drillers to transfer their hard-earned money over to teachers’ unions. It’s sick. Charlie is more of a diplomat than we are and uses nicer words, but make no mistake, he has an iron fist in his velvet editorial glove when it comes to “The Political Disaster that is Gov. Wolf’s PA Severance Tax Proposal”…
Read More “Guest Post: The Political Disaster that is Gov. Wolf’s PA Severance Tax Proposal”
Anti-Drilling/Fossil Fuel | Athens County | Industrywide Issues | Ohio | Regulation | Statewide OH | Wastewater

Athens County Asks Gov Kasich & ODNR to Stop New Injection Wells
July 2, 2015July 2, 2015

Athens County, OH Commissioners have just passed a resolution calling for a ban on new injection wells in the county. The resolution has zero force and no weight of law–it’s not a legal document and if it were, it would be illegal. Only the Ohio Dept. of Natural Resources (ODNR) can decide whether or not to issue permits for Class II injection wells in Ohio. Local municipalities have no say in the matter. But that doesn’t stop the nutters in Athens County from mouthing off (the thing they do best). Here’s their latest haughty communication requesting the Governor and the ODNR immediately and indefinitely refrain from issuing any more injection well permits not only in the People’s Socialist Paradise of Athens County, OH, but throughout the entire state of Ohio as well…
Read More “Athens County Asks Gov Kasich & ODNR to Stop New Injection Wells”
Columbia Pipeline Group | Energy Services | NiSource

NiSource/Columbia Pipeline Divorce is Final
July 2, 2015July 2, 2015

The NiSource/Columbia Pipeline Group are now officially divorced. Well, they call it a “separation,” but it’s really a divorce. Amicable, but permanent. Last September MDN brought you the news that NiSource, owner of Columbia Gas, would be spinning Columbia off into its own company in 2015 (see NiSource Splits in Two: Columbia Pipeline Will be Separate Company). NiSource the utility will remain focused on being a utility, and Columbia Gas will be spun off into it’s own company called Columbia Pipeline Group (CPG) under a master limited partnership (MLP) structure. As of yesterday the divorce is final and the two companies have gone their separate ways…
Read More “NiSource/Columbia Pipeline Divorce is Final”
DTE Energy | Energy Services | Industrywide Issues | NEXUS Pipeline | Ohio | Pipelines | Spectra Energy | Statewide OH

Ohio Chamber of Commerce Endorses NEXUS Gas Pipeline Project
July 2, 2015July 2, 2015

People in Ohio continue to choose sides in the debate over whether to build 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. NEXUS is a joint venture between Detroit-based DTE Energy and Houston-based Spectra Energy. Plenty of wackos have come out of the woodwork to oppose it (see Medina County, OH Antis Trot Out Home Rule Ballot Measure and NEXUS Pipeline Files Draft Reports w/FERC, Rejects CORNy Re-Route). Plenty of people have also endorsed the project. The latest power-house group to endorse the NEXUS is the Ohio Chamber of Commerce. The Chamber points out the NEXUS project will not only be a super stimulant for Ohio’s economy and create jobs, it will also save consumers money on their gas and electric bills…
Read More “Ohio Chamber of Commerce Endorses NEXUS Gas Pipeline Project”