Marcellus Drilling News

Accidents | Chesapeake Energy | Columbiana County | Energy Companies | Industrywide Issues | Ohio | Utica Shale

Utica Rig Being Moved Leaked Drilling Oil for 27 Miles on OH Roads
May 18, 2015May 18, 2015

Traffic along an extended stretch of two Ohio highways in Columbiana County, OH was closed for nearly five hours on April 23 because a drilling rig that was moved leaked “a mineral-based synthetic, a non-hazardous drilling oil compound” for 27 miles as it was moved. Ouch. Somebody’s head will roll. The rig was being moved by a contractor for Chesapeake Energy. You might think somebody would notice something leaking over the course of 27 bloody miles! But apparently not. Fortunately the fluid/oil was not toxic or dangerous in any way, other than perhaps slipping on it…
Read More “Utica Rig Being Moved Leaked Drilling Oil for 27 Miles on OH Roads”
Energy Services | GreenHunter Resources | Industrywide Issues | Meigs County | Ohio | Regulation | Ritchie County | Wastewater | West Virginia

GreenHunter Resources 1Q15: Bets the Ranch on OH Injection Wells
May 18, 2015May 18, 2015

A lot of news to report about GreenHunter Resources, the fresh water and wastewater subsidiary of Magnum Hunter Resources, focused totally on the Marcellus and Utica Shale region. On Friday GreenHunter released their first quarter 2015 update and held an earnings call with analysts. If we could sum it up in our own layman’s terms–we’d say GreenHunter is currently treading water (pun intended) as they wait to turn around their lack of revenue by bringing online a series of wastewater injection wells in both Ohio and West Virginia. Although GreenHunter’s COO Kirk Trosclair rightly pointed out the company has gotten much more efficient–driving down costs–there’s no papering over the fact that GreenHunter’s revenues for 1Q15 were down 39% from the same quarter in 2014 ($5.1 million in 1Q15 vs. $8.5 million in 1Q14). Which seems odd as GreenHunter’s CEO, Gary Evans, said that the company currently turns down 20 to 25,000 barrels a day of water that they can’t handle because they are currently “full.” GreenHunter currently has two operating injection wells at their Mills Hunter facility, located in Meigs County, OH and one injection well operating in Ritchie County, WV. By the end of June they plan to have six wells operating at the Mills facility and a second well at the Ritchie location…
Read More “GreenHunter Resources 1Q15: Bets the Ranch on OH Injection Wells”
Energy Services | Industrywide Issues | New York | Pipelines | Statewide NY | Transco | Williams

With Williams Pipeline Completed, Fracked Shale Gas Flows to NYC
May 18, 2015May 18, 2015

More Marcellus Shale gas is now flowing to 1.8 million customers in Brooklyn, Queens, Staten Island and Long Island thanks to the completion of the Williams Rockaway Delivery Lateral and Northeast Connector projects. The Rockaway project added 3.2 miles of new Transco pipeline off- and on-shore (and related facilities) in New York (see Williams Files with FERC for New Access Point to NYC from Transco Pipeline). The Northeast Connector project added new compressionion equipment at three existing Transco facilities in New Jersey and Pennsylvania (see Williams Happy with FERC Progress on NE Pipeline Expansions). The two projects fit hand-in-glove. The Northeast Connector now delivers 100,000 dekatherms (or 100 million cubic feet, Mmcf) per day to the Rockaway Delivery Lateral. The Rockaway Lateral is delivering 647,000 dekatherms (or 647 Mmcf) per day to NYC residents of abundant, cheap, clean-burning FRACKED (mostly) Marcellus Shale gas…
Read More “With Williams Pipeline Completed, Fracked Shale Gas Flows to NYC”
Energy Companies | Rex Energy

Rex Energy CFO Buys Another 10K Shares of Rex Stock
May 18, 2015May 18, 2015

Rex Energy is a small but determined driller headquartered in State College, PA totally focused on the Marcellus and Utica Shale. We like to call Rex “the little energy company that can and does” when it comes to profitably tapping northeast shale. As we told you a few weeks ago, Rex is, like all drillers, facing some stiff challenges right now (see Rex Energy 1Q15: Production Up 61%, Revenue Down 33%, Gulf Coast Deal). Even though revenues are down for the company, Rex’s CFO Thomas Rajan still believes in the company. He just bought another 10,000 shares of stock himself for $5.45 per share ($54,500.00). That puts Rajan’s personal holdings of Rex stock at 190,000 shares, worth over $1 million. It’s good to see Rex’s upper management eating their own dog food…
Read More “Rex Energy CFO Buys Another 10K Shares of Rex Stock”
Chesapeake Energy | Columbiana County | Energy Companies | Industrywide Issues | Ohio | Roads

Chesapeake Refuses to Fix OH Road, Town Terminates RUMA
May 18, 2015May 18, 2015

Chesapeake Energy has told Franklin Township (Columbiana County), OH to stuff their RUMA where the sun doesn’t shine, in so many words. A RUMA is a Road Use Maintenance Agreement under which a driller agrees to maintain certain roadways in a town or county that they’re using to access drill pads. When you run heavy trucks over roads constantly, it damages the roads. Chessy had such an agreement with Franklin Township and since they aren’t drilling right now (any more?) in the town, they refused to fix a road Franklin thought they should fix. So Franklin has terminated the RUMA. Next step–lower the weight limit for trucks on the roads and bar Chesapeake trucks from using them. We wonder if Chessy has ever heard the phrase “cutting off your nose to spite your face”…
Read More “Chesapeake Refuses to Fix OH Road, Town Terminates RUMA”
Industrywide Issues | Statewide WV | Taxation | West Virginia

Breakdown of WV’s $188M Severance Tax & Where it Goes
May 18, 2015May 18, 2015

In April MDN shared the news that severance tax collections in West Virginia doubled in 2014 over 2013. We also told you that a paltry 7.5% of what’s collected actually stays in the counties where the drilling happens (see WV Severance Tax Doubles in 2014, 90% Disappears in Charleston). We have more of a breakdown for which counties raised what in severance tax in 2014 below. The interesting thing to MDN is this: Even though Charleston steals 90% of the money to redistribute as they see fit, Marcellus and Utica drilling in places like Wetzel County have lifted that county out of economic depression. Which goes to show that it’s not government showering select groups and geographies with money that creates wealth. It’s the private sector–the oil and gas industry–that is the engine of economic growth and wealth in this country…
Read More “Breakdown of WV’s $188M Severance Tax & Where it Goes”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Lebanon County | Pennsylvania | Pipelines | Regulation | Sunoco Logistics

Antis’ Zoning Appeal re Mariner East Pump Stn in Lebanon “Moot”
May 18, 2015May 18, 2015

Back in November MDN told you about anti-drillers in Lebanon County, PA who had succumbed to shiny object syndrome and transferred their irrational hatred of fossil fuels from the Williams Atlantic Sunrise pipeline project to the already-in-the-ground but getting repurposed Sunoco Logistics Mariner East pipeline (see New Target for Lebanon, PA Antis: Mariner East Pipeline). As part of converting Mariner East from an oil pipeline to flow natural gas liquids, including propane and ethane, from western PA to the Philadelphia area, some 31 pump and valve stations need to be constructed–one of them in West Cornwall in Lebanon County. Three local residents and an anti-drilling group called Concerned Citizens of Lebanon County filed an appeal with the zoning board to force the town to rescind permits they granted to allow the pump station (see Sunoco Presents on Mariner East Pump Station in Lebanon, PA). Last Thursday the West Cornwall Township Zoning Hearing Board declared “moot” that appeal. The anti-drillers are hopping mad…
Read More “Antis’ Zoning Appeal re Mariner East Pump Stn in Lebanon “Moot””
Commodity Price | Economic Impact | Energy Services | Industrywide Issues | Pennsylvania | Statewide PA | UGI Energy Services

SE PA Natgas Customers See Rates Drop 13.5% Thx to Marcellus
May 18, 2015May 18, 2015

Last winter in the northeast saw record-setting cold temperatures in many locations–particularly in Pennsylvania–and near-record demand for natural gas. That would normally mean the price of natural gas used to heat homes and power businesses would rise–significantly. Instead, if you’re among the 178,000 customers who live or work in one of 15 southeastern PA counties served by UGI Penn Natural Gas, your rates are about to go down–again. How much? By an average of 10.3% as of June 1st and another 3.2% on December 1st (total of 13.5% in 6 months). Why? Because UGI now sources ~90% of its natural gas from the cheap, abundant, clean-burning, homegrown, FRACKED Marcellus Shale. Even with record low temps and record high demand, your price just keeps dropping. UGI customers in other PA regions (northeast and central PA) are also seeing rates drop…
Read More “SE PA Natgas Customers See Rates Drop 13.5% Thx to Marcellus”
Commodity Price | Energy Services | Industrywide Issues | Pennsylvania | Supply Chain | UGI Energy Services | Union County

Marcellus Shale Gas Road Show Visits Union County, PA
May 18, 2015May 18, 2015

Last Friday approximately 100 business leaders gathered in Lewisburg (Union County), PA for the “Think About Energy” briefing hosted by America’s Natural Gas Alliance (ANGA), UGI Utilities, Inc., UGI Energy Services and the Greater Susquehanna Valley Chamber of Commerce. The energy briefing is the seventh such briefing in a series being held throughout PA over the past year. The briefings focus on the supply outlook for natural gas and natural gas liquids, as well provide information on production, consumption trends, utilization opportunities and infrastructure developments. That is–the briefings help those who own or run businesses use and profit from the availability of cheap, abundant Marcellus Shale gas and figure out how to plug into the supply chain. Such sessions are not uncommon. What is uncommon about this session is it’s location–Union County–which is south of Lycoming County and east of Centre County. Union has not (yet) seen a single Marcellus Shale well drilled…
Read More “Marcellus Shale Gas Road Show Visits Union County, PA”
About MDN | Calendar

Calendar of Events for May 18 – Aug 17 (90 Days)
May 18, 2015May 18, 2015

Below are upcoming events for the next three months (90 days). To see the full list of future events, visit this page: //marcellusdrilling.com/calendar/.

NOTE: To have an item included, please email it to: calendar@marcellusdrilling.com.
Read More “Calendar of Events for May 18 – Aug 17 (90 Days)”
Best of the Rest

Marcellus & Utica Shale Story Links: Mon, May 18, 2015
May 18, 2015May 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: Mon, May 18, 2015”
Anti-Drilling/Fossil Fuel | Crestwood Midstream | Energy Services | Industrywide Issues | New York | Schuyler County

Josh Fox Among 21 Arrested at Crestwood Facility in Upstate NY
May 15, 2015May 15, 2015

Thank God we get some comic relief every now and again by the bizarre antics of anti-drillers. Covering the miracle of wholesome, safe and good hydraulic fracturing and the many benefits to society of natural gas is rewarding, but what makes it fun is to point out the hypocrisy and stupid behavior of those who oppose it. On Wednesday a group of mostly old upstate NY hippies staged yet another protest and illegally blocked the entrance of the future underground propane storage facility near Watkins Glen, NY owned and operated by Crestwood Midstream. Getting arrested in front of the Seneca Lake facility to gain media attention is a regular occurrence (see 10 Antis Arrested for Blocking Crestwood Facility at Seneca Lake and NY Protesters Arrested for Blocking NatGas Storage Facility). On Wednesday, the largest number of protesters illegally blocking the facility–a veritable mob–was arrested. There were 21 arrests in all. Among them was Gasland mockumentary maker and minor celebrity Josh Fox…
Read More “Josh Fox Among 21 Arrested at Crestwood Facility in Upstate NY”
Beaver County | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Processing Plants | Shell

More Signs Shell is Close to Decision on PA Ethane Cracker Plant
May 15, 2015May 15, 2015

More signs that Shell is much closer to a decision on whether or not it will build an ethane cracker plant in Monaca (Beaver County), PA. An executive vice president with Shell Chemicals, speaking off-script at an event in Germany, said the company expects to make a decision “soon.” After that an official Shell spokesman, speaking on-script, came along to clean up the EVP’s poopy mess and said there is no timeline on a decision. Another positive sign, according to the EVP, is that the front-end engineering and design study on the project has been completed. But according to the spokesman, even though the study is done, there are “still hurdles” before making such a large investment decision. So it’s a tit for tat, back and forth. Our take: even though we’re suffering from cracker fatigue, we continue to be hopeful that Shell will be the first of those to announce a possible cracker to actually pull the trigger and build it…
Read More “More Signs Shell is Close to Decision on PA Ethane Cracker Plant”
Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

Reaction from Both Sides to NY Release of No-Frack Regulations
May 15, 2015May 15, 2015

The New York State Dept. of Environmental Conservation (DEC) has just published their Final Supplemental Generic Environmental Impact Statement (FSGEIS), the rules and regulations document that would govern fracking in the Empire State, should it ever be allowed by the Democratic dictatorship of Andrew Cuomo and his underling DEC Commissioner Joe Martens. As we pointed out yesterday, the final act will come in a few weeks (or months) when Martens issues a “Findings statement” that will essentially say fracking is just too risky to attempt for now (see NY Releases Final Fracking Rules – Don’t Get Your Hopes Up). We have reaction to the release the FSGEIS from two representative groups–the Joint Landowners Coalition of New York (JLCNY), which fights for landowners and their Constitutional property rights–and Earthjustice, an anti-fossil fuel group that fights against freedom and property rights and for the tyranny of big government…
Read More “Reaction from Both Sides to NY Release of No-Frack Regulations”
Industrywide Issues | New York | Pipelines | Statewide NY | Supply Chain

CA Co Gets Compressor Turbine Orders for Shale Gas in NY
May 15, 2015May 15, 2015

California company Capstone Turbine Corporation, on the left coast, recently received a new order for two new compressor stations from the right coast–from the Marcellus and Utica Shale to be exact. In a delicious case of irony, a “shale customer” is “using Capstone to provide two new compressor station facilities in the state of New York.” Even though NY just released regulations that won’t allow fracking. Obviously it’s for pipelines that will flow Marcellus Shale gas from PA through the state. Here’s the announcement from Capstone…
Read More “CA Co Gets Compressor Turbine Orders for Shale Gas in NY”
Energy Services | Seventy Seven Energy

Seventy Seven Energy Secures $100M Loan to Keep on Drillin’
May 15, 2015May 15, 2015

As we told you last week, Seventy Seven Energy–an oilfield services company with major operations in the northeast, the old Chesapeake Oilfield Operating division of Chesapeake–spun off into its own company on July 1, 2014–continues to operate in the red (see Seventy Seven Energy 1Q15: Red Ink Continues to Flow Heavy). The company has just secured a $100 million loan which, according to CEO Jerry Winchester, “strengthens our liquidity” and “provides us a greater ability to take advantage of opportunities that may arise to enhance shareholder value.” In other words, it allows them to keep the doors open…
Read More “Seventy Seven Energy Secures $100M Loan to Keep on Drillin’”