Marcellus Drilling News

Electrical Generation | Industrywide Issues | Lackawanna County | Pennsylvania

Scranton Newspaper Endorses Jessup Marcellus-Powered Electric Plant
June 1, 2015August 26, 2015

Must be a major advertiser has jerked pretty hard on the Scranton Times-Tribune’s chain because the newspaper that rarely supports anything to do with drilling is all of a sudden singing the praises of the planned Marcellus gas-powered electric generating plant in Jessup, PA being planned by Invenergy (see Newspaper Admits PA Gas-Powered Electric Plant Will Pollute Less). The editorial board of the Times-Tribune penned an editorial that is a full-throated endorsement of the project. The editorial says, in part…
Read More “Scranton Newspaper Endorses Jessup Marcellus-Powered Electric Plant”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Maryland | Regulation | Statewide MD

Outsider Anti-Drilling Groups Celebrate Victory in Maryland Frack Ban
June 1, 2015June 1, 2015

As MDN reported last week, Maryland’s new Republican Governor, Larry Hogan–missing an important piece of his male anatomy–allowed a Maryland bill to become law that bans fracking in Maryland for another two years (see Maryland’s Pusillanimous Gov Allows Frack Moratorium to Become Law). That now gives non-Maryland anti-fracking groups another two years in which to lock down a total and permanent ban on fracking–which is their stated goal. The odious Food & Water Watch and other non-Maryland, outsider anti-drilling groups couldn’t be happier over the victory…
Read More “Outsider Anti-Drilling Groups Celebrate Victory in Maryland Frack Ban”
CNG/LNG | Energy Services | Industrywide Issues | Pipelines | Spectra Energy

NYC Conf: Competing Visions to Relieve New England Gas Crunch
June 1, 2015June 1, 2015

SNL Financial reports on the Platts Northeast Power and Gas Markets Conference in New York City, held last week on May 28-29. Among those participating were companies offering vastly different solutions for the ongoing natural gas shortage in New England. On one side was GDF Suez Gas NA LLC (a French company) and Repsol Energy North America (a Spanish company), both hoping to import LNG to Massachusetts. Their pitch is that New England just needs enough natural gas to even out the peaks and valleys of supply–and of course GDF’s LNG terminal is the perfect solution (see Guess Why GDF Suez Doesn’t Want Marcellus Pipeline to New England). On the other side was Spectra Energy whose stated goal is to move 1/3 of Marcellus Shale gas produced into New England (see Access Northeast Pipeline — Pulling Ahead of Kinder’s NED Project?). Here’s a summary/wrap-up…
Read More “NYC Conf: Competing Visions to Relieve New England Gas Crunch”
Industrywide Issues | Research

Report: Shale Drillers Find Ways to Profit by Lowering Costs
June 1, 2015June 1, 2015

The New York-based Manhattan Institute, a non-profit think tank with a mission “to develop and disseminate new ideas that foster greater economic choice and individual responsibility,” says the shale revolution is only just getting started, contrary to the naysayers who believe the low price of oil and gas means the end of the revolution. In a new report titled “Shale 2.0: Technology and the Coming Big-Data Revolution in America’s Shale Oil Fields” (full copy below), Mark Mills, a Senior Fellow at the Manhattan Institute, writes that new technology is rapidly lowering the cost to produce shale energy and that drillers will be able to turn a profit on much lower oil and gas prices than previously thought…
Read More “Report: Shale Drillers Find Ways to Profit by Lowering Costs”
BG Group | BP | Energy Companies | Equinor/Statoil | Industrywide Issues | Shell | Taxation | Total

Big European Oil Companies Want UN to Slap Carbon Tax on U.S.
June 1, 2015June 1, 2015

The Europeans are sometimes, well, stupid. How else can you explain six large oil companies–BG Group, BP, Eni, Royal Dutch Shell, Statoil and Total–buying into the tax scheme called carbon credits? The six sent a letter (copy below) to the United Nations Framework Convention on Climate Change (UNFCCC) begging the UN to introduce carbon pricing systems and “create clear, stable, ambitious policy frameworks that could eventually connect national systems” that would “reduce uncertainty and encourage the most cost effective ways of reducing carbon emissions widely.” This is madness. Create laws that supersede each country’s sovereignty and impose a worldwide tax on carbon–the stuff you breathe out with every breath–as some sort of solution for the imaginary problem of man-made global warming? If the UN does such a thing, it will spell the end of the companies sending the letter! What do you call a company trying to commit economic suicide? Do the investors of these six companies know the heads of those companies are trying to destroy the company and their investments along with it? No wonder Europe is in decline…
Read More “Big European Oil Companies Want UN to Slap Carbon Tax on U.S.”
Best of the Rest

Marcellus & Utica Shale Story Links: Mon, Jun 1, 2015
June 1, 2015June 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: Mon, Jun 1, 2015”
Accidents | Chevron | Energy Companies | Greene County (PA) | Industrywide Issues | Litigation | Pennsylvania

Chevron Settles PA Marcellus Wrongful Death Lawsuit for $5M
May 29, 2015May 29, 2015

In February 2014 there was an explosion and fire at a Chevron well pad that eventually spread from one Marcellus well to a second well on the same well pad in Greene County, PA (see Explosion & Fire at Chevron Well in SWPA – 1 Person Missing). Ian McKee, 27, a Cameron International contractor working at the site was tragically killed in the blast (see Remains of Chevron Contractor Found at Greene County Well Site). The final report of the PA Dept. of Environmental Protection (DEP) investigating the accident concluded there was plenty of blame for Chevron, primarily from using overworked and inexperienced well site managers (see DEP Issues Final Report – What Caused Chevron Well Fire?). Ian’s girlfriend/partner was pregnant at the time of his death. Ian’s parents sued Chevron for wrongful death (see Parents of Worker Killed in Chevron Greene Co Fire Sue). That lawsuit has just been settled for $5 million, broken down as follows…
Read More “Chevron Settles PA Marcellus Wrongful Death Lawsuit for $5M”
Butler County | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Litigation | Pennsylvania | Regulation | Rex Energy

Rex Energy to Restart Drilling Near Mars School Following Vote
May 29, 2015May 29, 2015

Let the drilling begin! The three members of the Middlesex Zoning Hearing Board (Butler County, PA, where the Mars School District is located) voted unanimously on Wednesday to reject challenges by anti-drillers to changes in zoning laws that allow Rex Energy to drill a series of wells on a pad about 3/4 of a mile from the Mars School. Four Martian parents have worked themselves up into a frenzy, convincing themselves that faraway drilling will harm their precious, innocent lil’ chil’ren. The Martians have enlisted the help of anti-drilling groups from the opposite side of the state–the Philadelphia area–tapping into their deep pockets to fund endless lawsuits and appeals that are costing Middlesex taxpayers big bucks to defend (see Dela. RiverKeeper, Clean Air Council Cost Middlesex Residents $35K+). (By the way, when is the IRS going to investigate THE Delaware Riverkeeper for clear violations of their 501(c)(3) tax exempt status? Riverkeeper continues to operate, politically, far outside of the Delaware River Basin. Their tax exempt status should be revoked.) The zoning board vote was good news for Rex who says they won’t waste any time in returning to the drill site to begin work. By the time the Martians are done suing, the wells will already be drilled…
Read More “Rex Energy to Restart Drilling Near Mars School Following Vote”
Energy Companies | Industrywide Issues | Litigation | Pennsylvania | Range Resources Corp | Regulation | Washington County

Range Capitulates, Closing 4 Freshwater Ponds in Mt. Pleasant, PA
May 29, 2015May 29, 2015

More than two years of acrimony and lawsuits are now over for Range Resources in Mt. Pleasant (Washington County), PA. Mt. Pleasant is one of the original seven selfish towns that sued PA to overturn portions of the Act 13 oil and gas law. The town was giving Range a hard time over four freshwater ponds (called “impoundments,” not to be confused with wastewater impoundments) the company was using to drill wells in nearby non-Mt. Pleasant locations. The town served the company with notices of violation in July 2013 and then held a public hearing in August 2013 where things got heated between the town and Range (see Range Resources Argues with Mt Pleasant over Water Impoundment). Mt. Pleasant kept after them (see Mt. Pleasant Zoning Bd Says Range Water Impoundments in Violation), and after them (see Mt Pleasant Twp Shenanigans re Range Request for Water Ponds), and after them (see Mt. Pleasant, PA Continues to Ride Range Over Water Ponds). Sooner or later a company can take a hint that a township is anti-business. Range is throwing in the towel, closing down all four freshwater ponds, and leaving town…
Read More “Range Capitulates, Closing 4 Freshwater Ponds in Mt. Pleasant, PA”
Crime | Industrywide Issues | Litigation | Mahoning County | Ohio | Regulation

Hardrock Pleads Guilty to Illegal Wastewater Dumping, Fined $100K
May 29, 2015May 29, 2015

A final footnote to tell you about concerning the notorious case of illegal frack wastewater dumping near Youngstown, OH that happened in 2012 and 2013. Ben Lupo, previous owner of D&L Energy and its associated company Hardrock Excavating, directed employees to dump frack wastwater hauled by Hardrock into a drain that emptied into a stream that emptied into the Mahoning River near Youngstown, OH (see Youngstown Business Dumped >200K Gal of Untreated Wastewater). It was later discovered that from September 2012 to end of January 2013, Lupo was responsible for dumping at least 30 loads of frack wastewater literally down the drain and into the river. After an investigation and charges, last August Lupo plead guilty and was sentenced to 23 months in prison and a $25,000 fine (see Final Chapter for Youngstown Illegal Wastewater Dumper: Prison & Fine). The final final chapter has now been written. Lupo’s company, Hardrock Excavating, pleaded guilty on Thursday and was fined $100,000. In an interesting twist, the judge ordered $25,000 of that total to be paid to two environmental organizations…
Read More “Hardrock Pleads Guilty to Illegal Wastewater Dumping, Fined $100K”
Industrywide Issues | Pennsylvania | Regulation | Statewide PA

PA Drought Conditions Begin to Affect Marcellus Drilling
May 29, 2015May 29, 2015

Drought conditions now exist over a large part of Pennsylvania, and because of it, we are beginning to see some impacts on Marcellus Shale drilling. The PA Dept. of Environmental Protection (DEP) oversees water management/withdrawals from streams and rivers in the central and western part of the state. The Susquehanna River Basin Commission (SRBC) oversees it in the northeastern part of the state. The DEP has not (yet) issued any restrictions, but the SRBC reports that restrictions previously written into water permits for drillers in the northeast have affected the withdrawals of two drillers: Cabot Oil & Gas (in Susquehanna County) and Seneca Resources (in Tioga County)…
Read More “PA Drought Conditions Begin to Affect Marcellus Drilling”
Commodity Price | Industrywide Issues | Research

Is Marcellus Production Heading for a Decline? EIA Says Yes
May 29, 2015May 29, 2015

A Reuters story is quoting analysis done by the U.S. Energy Information Administration (our favorite government agency) saying the EIA expects production in the Marcellus to remain flat for the next several years, and then begin a slow decline of 1% or so per year. The EIA prediction is based on the theory that natural gas prices in the Marcellus will remain really low–below $2 per thousand cubic feet (Mcf) through 2016, and the average price won’t hit $4/Mcf until 2020 or later. Private analysts (many of them) disagree and say production will continue to climb over the next several years as new pipelines come online and drillers “uncurtail” production that is idled right now. Who’s right?…
Read More “Is Marcellus Production Heading for a Decline? EIA Says Yes”
Energy Services | MarkWest Energy

MarkWest Floats Another Round of IOUs–This Time for $1.2B
May 29, 2015May 29, 2015

Back in March, MarkWest Energy floated IOUs, otherwise called unsecured notes, and raised a cool $650 million in cash (see MarkWest Hauls in $650M Cash from New IOUs, Paying Down Old Debt). It worked so well the first time, MarkWest has decided to try it again. This time they’re floating IOUs looking to haul in a whopping $1.2 billion (with a “b”). MarkWest will use some of the proceeds from the new IOUs to pay off older IOUs. The new IOUs will be due and payable by MarkWest in 2025. Some of the new cash raised will no doubt go to finance MarkWest’s operations and expansion in the Marcellus/Utica…
Read More “MarkWest Floats Another Round of IOUs–This Time for $1.2B”
Energy Companies | Warren Resources

Warren Resources Converts Refinanced Debts into $200M Cash
May 29, 2015May 29, 2015

Warren Resources, an independent oil and gas company headquartered in New York City whose drilling is focused primarily in California but with a small operation in the Pennsylvania Marcellus Shale, has just refinanced $250 million worth of existing loans and notes and somehow has wound up with just over $200 million in cash as part of the process. How you can refinance loans and pull out that much cash we have no clue. If you understand the following financial machinations with its talk about first lien credit lines, second lien debt, incurrence tests, LIBOR floors and other financial mumbo jumbo, please enlighten us!…
Read More “Warren Resources Converts Refinanced Debts into $200M Cash”
Industrywide Issues | New York | Pipelines | Schuyler County | Statewide NY

Will Companies Continue Making Grants after Pipelines are Built?
May 29, 2015May 29, 2015

We love pipelines. We love the companies that build them. Pipelines are the safest form of transportation period–bar none. The thing we don’t love is how pipeline companies are buying support for their projects. We’ve written about it before (see Constitution Pipeline Payments to Groups – Donations or Payola?; PennEast Payola? Buying Support One Community at a Time; and Kinder Morgan Hops on the Pipeline Payola Bandwagon in NEPA). Our objection is not to these midstream companies making community grants–much needed funds for very worthy purposes. Our objection is to the timing of the grants. Rather than make the grants before all of the permits are granted and the work has begun, wait and make the grants after the work has begun–to prove you want to be a good neighbor. An article from Schoharie County, NY about the Constitution Pipeline’s payola caught our eye and sparked a question for us: Will the Constitution still be making these community grants, to prove they’re good neighbors, long after the pipeline is built?…
Read More “Will Companies Continue Making Grants after Pipelines are Built?”
Industrywide Issues | Noise | Pennsylvania | Regulation | Statewide PA

Who Ya Gonna Call? PA DEP (Noise) Ghostbusters!
May 29, 2015May 29, 2015

The Pennsylvania Dept. of Environmental Protection is wading into an area that’s likely best left to towns and municipalities: regulation of noise coming from Marcellus Shale drilling operations. The DEP wants drillers to craft a site-specific plan for noise mitigation for each and every well pad they drill. Problem is, the DEP won’t give drillers any standards against which to devise their plans. That is, the DEP isn’t willing to say “this loud is too loud at this distance from the drill site.” Drillers are understandably confused. How do you draw up a plan with no standards/no regulations? The DEP says noise is a funny thing–it can carry in one place but not another. They claim you can’t draw up hard and fast guidelines. One noise expert says trying to figure out the source of noise (and how to prevent it) is “sort of chasing ghosts”…
Read More “Who Ya Gonna Call? PA DEP (Noise) Ghostbusters!”