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Marcellus Drilling News
  • Energy Companies | Halcon Resources | Ohio | Trumbull County

    False Alarm: Halcon Resources has NOT Resumed Utica Drilling

    June 18, 2015June 18, 2015

    In January, Halcon Resources said it was slashing its drilling budget and would do no drilling in the Ohio Utica in 2015 (see Halcon Resources: Slashes Drilling Budget 50%, No Utica for 2015). In February, Halcon CEO Floyd Wilson, famous for speaking his mind, responded to an analyst question about their plans for the Utica by joking (see Halcon CEO Floyd Wilson: “What’s the Utica?”). So imagine everyone’s surprise when the Ohio Dept. of Natural Resources (ODNR) released a report recently that listed a permit for a Halcon site in Trumbull County (the northern Utica where Wilson once said he wouldn’t drill any more sh***y wells) with a status of “DRILLING”. The Youngstown Business Journal understandably trumpeted this big news (see their story: Halcon Resumes Drilling in Trumbull County). Halcon was quick to respond. It seems that there is no active drilling at that site in Trumbull County–they wanted the permit re-issued just in case they may one day resume drilling. The designation of “DRILLING” in the ODNR report was inaccurate…
    Read More “False Alarm: Halcon Resources has NOT Resumed Utica Drilling”

  • Bradford County | Economic Impact | Industrywide Issues | Jobs | Pennsylvania

    NEPA Tungsten Plant Begins Converting Marcellus Gas into Hydrogen

    June 18, 2015June 18, 2015

    This is the story of how abundant and cheap Marcellus Shale gas is helping to secure the jobs of 550 people in Bradford County, PA, people who work in a business that has nothing to do with the Marcellus Shale industry. Yesterday, Global Tungsten & Powders Corp. in Towanda, PA held a ribbon cutting ceremony for a new piece of equipment at the company’s plant that will convert Marcellus Shale gas, extracted locally, into hydrogen used in enormous quantities at the plant. The Global Tungsten plant in Towanda is one of the country’s largest users of hydrogen (who knew?). The company uses hydrogen to manufacture tungsten products at the plant, including components for solid oxide fuel cells (i.e., big batteries). Until now, liquid hydrogen has had to be trucked to the plant daily, from hundreds (even thousands) of miles away. The new equipment unveiled yesterday, which will be owned and operated by Air Products, will provide 80-90% of the plant’s hydrogen needs. Just one more way this evil, nasty fossil fuel called Marcellus Shale gas is benefiting Pennsylvanians (jobs and economy) AND making the planet a better/safer/greener place to live…
    Read More “NEPA Tungsten Plant Begins Converting Marcellus Gas into Hydrogen”

  • Energy Services | Industrywide Issues | Kinder Morgan | NGLs | Pipelines | Tennessee Gas Pipeline

    KM’s SECOND Binding Open Season for Utica/Marcellus NGL Pipeline

    June 18, 2015June 18, 2015

    Last summer, in response to a reader’s query, MDN went nosing around to bring you the status of what had been called Kinder Morgan’s Y-Grade NGL pipeline from the Utica/Marcellus to the Gulf Coast. We found, at the time, the project is still very much alive (see Kinder Morgan Y-Grade NGL Pipeline from NE to SW Still Alive). We also learned at that time the name had been changed to be the Utica Marcellus Texas Pipeline (UMTP) Project. Kinder Morgan’s plan is to repurpose nearly 1,000 miles of existing Tennessee Gas Pipeline, reversing the flow to go from north to south, and changing the hydrocarbons in the pipeline to be NGLs. As we pointed out in December, that has some of the anti-pipeline kooks in Kentucky all riled up (see KY Antis Now Opposing Kinder Morgan Y-Grade NGL Pipeline). Yesterday Kinder Morgan announced a binding open season to sign up shippers for UMTP (see the announcement below). But wait a minute! KM ran an binding open season in January/February 2014. Must be they had no (or few) takers then. Will they get enough customers the second time around?…
    Read More “KM’s SECOND Binding Open Season for Utica/Marcellus NGL Pipeline”

  • Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | NEXUS Pipeline | Ohio | Pipelines | Statewide OH

    NEXUS Pipeline Files Draft Reports w/FERC, Rejects CORNy Re-Route

    June 18, 2015June 18, 2015

    Last Friday 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, filed a full set of twelve draft environmental Resource Reports with the Federal Energy Regulatory Commission (FERC). A summary of the filing (included below) shows there are six large customers for the pipeline in Ohio (gas processors, utilities and large industrial companies). In addition to information about who will use the pipeline and the economic benefits that will come from the pipeline, NEXUS also filed information on alternative routes for the pipeline. Of note, one alternative route, proposed by the Coalition to Reroute NEXUS (CORN, which we’ve dubbed CORNy), is flat out rejected by NEXUS. CORNy wants to move the pipeline away from the Canton-Akron area. NEXUS says that’s a bad idea, for lots of reasons…
    Read More “NEXUS Pipeline Files Draft Reports w/FERC, Rejects CORNy Re-Route”

  • 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…
    Read More “Business & Labor Unions Join Forces to Promote Pipelines in PA”

  • 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

    slap across the faceLast 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…
    Read More “Virginia RINOs in League with Dems to Stop Atlantic Coast Pipeline”

  • 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…
    Read More “Shell Buys Beaver County, PA Property for Future Cracker Plant”

  • 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…
    Read More “Expert Says Best to Extract from Marcellus/UD Layers at Same Time”

  • 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”

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