Marcellus Drilling News

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…
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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”
Anti-Drilling/Fossil Fuel | Dominion Energy | Energy Services | Industrywide Issues | Pipelines | Statewide VA | Virginia

Virginia RINOs in League with Dems to Stop Atlantic Coast Pipeline
June 17, 2015June 19, 2015

Here’s the tag line from Navigators Global, a Washington, DC lobbying firm: “From the trenches of political campaigns to the height of corporate crises, we’ve navigated the toughest terrain. Whatever your challenge is, we can guide you to victory.” Looks like they’ll need to consult to themselves since the company is facing its own corporate crisis. The founder and president of Navigators Global is Phil Anderson. Phil is one of the rich, gentry class anti-pipeliners behind a group called “All Pain No Gain” that’s trying to stop the Dominion $5 billion, 550-mile Atlantic Coast Pipeline project from going through Virginia (and through his land). We highlighted a McClatchy article yesterday that talks about the efforts of the All Pain No Gain group in raising big money to oppose the Atlantic Coast Pipeline project (see VA Gentry Class Raising $1M to Oppose Atlantic Coast Pipeline). We’ve since learned that when Phil’s involvement with that anti-drilling group became known, his firm immediately lost a $20,000 contract with NextEra Energy, another pipeline company with a project running through Virginia (see EQT & NextEra Tie the Knot on WV-VA Pipeline Joint Venture). Beginning of a trend? Anderson is a Republican In Name Only, and he’s joined by other RINOs in his opposition to pipelines–rich, white landowners (the gentry class) who don’t want pipelines in their back yards. Another Virginia RINO pouring money into the anti-pipeline effort is Tom Harvey, chairman of the non-profit Global Environment & Technology Foundation…
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Beaver County | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Processing Plants | Shell

Shell Buys Beaver County, PA Property for Future Cracker Plant
June 17, 2015June 17, 2015

Another positive sign that Shell may move forward with building a $2-$3 billion ethane cracker plant in Beaver County, PA. Yesterday it was reported that Shell closed on the former Horsehead zinc smelter property in Potter that would be the primary location of the cracker plant. Previously Shell extended their option to buy the property–three different times. They’ve finally bought the property–for $13.5 million according to the deed transfer, although it’s quite possible Shell paid way more than that for the property. One real estate expert in the area said the property is worth $75-$100 million. In addition to buying the old Horsehead site, Shell, over time, has also purchased 12 other parcels in the area…
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Upper Devonian Shale

Expert Says Best to Extract from Marcellus/UD Layers at Same Time
June 17, 2015June 17, 2015

In May, MDN told you about the Marcellus Shale’s “little brother” shale play in Pennsylvania and beyond–what is interchangeably called the Upper Devonian, or Burket or Geneseo shale play (see Upper Devonian Shale: Utica/Marcellus’ “Little Brother”). We also told you that so far approximately 85 wells have been drilled in the Upper Devonian. Gregory Wrightstone, owner of Wrightstone Energy Consulting, adds to our knowledge of the UD/Burket/Geneseo. Wrightstone will speak next week at Hart Energy’s Developing Unconventionals DUG East conference in Pittsburgh about the UD. Ahead of that, Wrightstone sat down with the Pittsburgh Tribune-Review and said some interesting things about the UD, including a comment that by drilling the Marcellus layer first (about 400 feet below the UD), drillers may be robbing pressure needed to efficiently extract gas from the UD later on–when and if they come back for that layer. It’s potentially better to go after both layers at the same time…
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Energy Services | Industrywide Issues | Sand/Proppant | Unimin | Webster County | West Virginia

Unimin Energy Opens 11th Marcellus/Utica Frac Sand Terminal
June 17, 2015June 17, 2015

A Texas-based company, Unimin Energy Solutions, has just opened its eleventh frac sand terminal–this one in Jerry Run, WV. The new terminal can store 20,000 tons of frac sand and load up to 25 trucks per hour. Uminim’s operations pretty much blanket the Marcellus and Utica Shale regions (see the map below), from northeast PA to southwest PA, various points in WV and even in eastern OH. There’s even a Uminim frac sand operation in Binghamton, NY, near MDN HQ! Here’s the low down on the newest Unimim facility in Jerry Run, along with a list of their other locations…
Read More “Unimin Energy Opens 11th Marcellus/Utica Frac Sand Terminal”
Housing | Industrywide Issues | Pennsylvania | Statewide PA

PHFA Looking to Build Low Income Housing in Marcellus Region
June 17, 2015June 17, 2015

The Pennsylvania Housing Finance Agency (PHFA) plans to use some of the $5 million they’re getting from the Marcellus Shale impact fee to fix up or build new low income housing projects in areas where there is Marcellus Shale drilling activity. The premise is that because of drilling, either people from outside of the area–or Pennsylvanians themselves–have snapped up apartments and houses in active drilling areas, driving up housing prices to the point that poor folks just can’t afford it anymore. The PHFA answer is to build or renovate housing projects and make them available to low income families/individuals…
Read More “PHFA Looking to Build Low Income Housing in Marcellus Region”
Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Public Opinion | Statewide PA

More on that RMU Poll that Shows PA Residents Love Fracking
June 17, 2015June 17, 2015

Yesterday MDN highlighted a Robert Morris University poll on fracking (see Poll: 56% of Americans & 74% of Pennsylvanians Support Fracking). We mentioned at the time that only a few media outlets were reporting the results for this poll which had been conducted in early May. RMU themselves hadn’t reported it on their own website, even though other polls taken since (in June!) were listed. Apparently our chiding worked, because after our story RMU did posted an update on the poll on their website with this headline: “Fracking Enjoys Strong Support from Pennsylvanians”…
Read More “More on that RMU Poll that Shows PA Residents Love Fracking”
Best of the Rest

Marcellus & Utica Shale Story Links: Wed, Jun 17, 2015
June 17, 2015June 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: Wed, Jun 17, 2015”
Hydraulic Fracturing | Industrywide Issues | Research

EPA Begins Campaign to Discredit Their Own Fracking/Water Study
June 16, 2015June 16, 2015

The federal Environmental Protection Agency (EPA) is furiously backpedaling after releasing a draft of their four-year study of fracking and water supplies with the conclusion that, “Hydraulic fracturing activities in the U.S. are carried out in a way that have not led to widespread, systemic impacts on drinking water resources” (see EPA Draft Report Says Fracking Doesn’t Pollute Groundwater Supplies). Of course those of us who have long known this is the case have celebrated and pointed out the good news to the masses. Apparently the EPA, beholden to Big Green, either ideologically or financially, wasn’t prepared for the flood of stories saying “EPA says fracking is safe for water.” What to do, what to do? It’s obvious–they have to discredit their own research. Run away from it. So the EPA has begun to work with sycophantic members of mainstream liberal media, like the Pittsburgh Post-Gazette, to play up the “maybes, mights, could be’s and possibly’s” in the nearly 1,000-page report. In addition, the EPA has reactivated some of the retired dinosaurs from the agency to pitch stones at the research and paint nightmare scenarios. It’s like Jurassic World came to life at the EPA…
Read More “EPA Begins Campaign to Discredit Their Own Fracking/Water Study”
Ethane | Exporting | Industrywide Issues | Pennsylvania | Statewide PA

Marcellus/Utica Ethane to be Exported to Europe Starting This Year
June 16, 2015June 16, 2015

Exporting of Marcellus/Utica ethane from the Marcus Hook facility near Philadelphia is about to become a reality. Ineos Olefins & Polymers, one of Europe’s largest petrochemical companies, has just taken delivery of the first (of a planned eight) Large Gas Carriers (LGC)–an enormous ship specially outfitted to haul NGLs like ethane. The ship is nearly two football fields long and will hold almost 1 million cubic feet of ethane. The plan is to haul ethane to Ineos’ crackers in Scotland and Norway. Here’s the details, brought to us by our favorite government agency, the Energy Information Administration…
Read More “Marcellus/Utica Ethane to be Exported to Europe Starting This Year”
Industrywide Issues | Pennsylvania | Public Opinion | Statewide PA

Poll: 56% of Americans & 74% of Pennsylvanians Support Fracking
June 16, 2015June 16, 2015

It seems to us that we’ve finally reached the tipping point in this country where most people have made up their minds about fracking–and they support it. Robert Morris University’s Polling Institute recently conducted a new national poll on fracking and released the results to select PA media outlets. RMU hasn’t yet published the results on their website. (The poll was completed in early May, but the results are only now leaking out. Why are they hiding this?) The results we have, from several Pennsylvania news sources, show that a strong majority of citizens in the U.S. support fracking (56%). In Pennsylvania, 74% of those polled support shale fracking. We’d really like to see the crosstabs–the exact questions asked and the breakout, by demographic categories, of how people responded. Until that’s available, we have a couple of news reports to share the good news…
Read More “Poll: 56% of Americans & 74% of Pennsylvanians Support Fracking”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Litigation | Pennsylvania | Public Opinion | Statewide PA

Poll: PA Voters Want AG Kathleen Kane to Resign
June 16, 2015June 16, 2015

We have a second poll to share with you today from Robert Morris University, conducted in early June, this one on the topic of Pennsylvania’s anti-drilling and law-breaking Attorney General, Kathleen Kane. We won’t recount the laundry list of Kane’s persecution of the drilling industry in the state. We’ll only remind you that a grand jury is rumored to have found that she lied under oath–a little offense called perjury (see PA Grand Jury Finds Anti-Drilling AG Kathleen Kane Lied Under Oath). In a desperate attempt to hold on to power, Kane hired Lanny Davis to represent her in court. Lanny was Bill Clinton’s attack dog lawyer, hired to represent him after he lied under oath about getting BJs in the Oval Office. The depressing news coming from the RMU poll is that half of the residents of Pennsylvania don’t know about the “controversies” surrounding Kane–the fact that she lied under oath, etc. But of the other half who do know about it, two-thirds of them think she should resign–now…
Read More “Poll: PA Voters Want AG Kathleen Kane to Resign”