Marcellus Drilling News

Butler County | Energy Companies | Industrywide Issues | Pennsylvania | Processing Plants | Regulation | XTO

XTO Files Paperwork to Double Size of NGL Plant in W PA
May 12, 2015May 12, 2015

In 2013 XTO Energy began operation at its very own natural gas liquids (NGL) cryogenic processing facility in Butler County, PA (see XTO’s New NGL Recovery Plant in Butler County, PA Now Online). Life is good in the midstream. According to the Pittsburgh Business Times, XTO has just filed paperwork with the state to build a new plant at the site, doubling capacity at the facility…
Read More “XTO Files Paperwork to Double Size of NGL Plant in W PA”
Industrywide Issues | Pennsylvania | Research | Statewide PA | Wastewater

USGS Research – Marcellus Wastewater from 13 PA Wells Tested
May 12, 2015May 12, 2015

The U.S. Geological Survey (USGS) has just published a new research paper on the topic of produced water–the water that comes out of a drilled hole, drilled for an oil or gas well. The paper, titled “Organic and inorganic composition and microbiology of produced waters from Pennsylvania shale gas wells” was published in the journal Applied Geochemistry and looked at produced water samples from Pennsylvania Marcellus Shale wells. The weakness in the research is that it is based on water samples from only 13 wells. Quite frankly, the research (which we think pursues a worthwhile line of inquiry) raises more questions than it answers. What can we divine from this study? In our cursory review, it appears two things stand out: (1) Although the inorganic chemistry of the produced water was pretty consistent across all 13 wells, there were big differences in the organic geochemistry and microbiology (bacteria) from well to well; and (2) volatile organic compounds (VOCs) were found in only a few samples–just 4 of the 13 wells…
Read More “USGS Research – Marcellus Wastewater from 13 PA Wells Tested”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Kinder Morgan | Pipelines | Tennessee Gas Pipeline

Lunacy: NH Group Votes Against Pipeline Because of Global Warming
May 12, 2015May 12, 2015

It’s maddening. It makes one want to scream, “You idiots! Can’t you see the utter hypocrisy?” But it happens more than we’d like to admit. A group of “volunteers” who advise the Select Board in the New Hampshire community of Wilton have unanimously voted to oppose Kinder Morgan’s proposed expansion of the Tennessee Gas Pipeline that would run through Hillsborough County. The reason they oppose it? Natural gas is not a “renewable” energy source. They don’t oppose it because pipelines are unsafe or in any way threaten the environment. Nope. They oppose it because they cling to the belief that mankind is causing catastrophic global warming by using fossil fuels. Meanwhile, everything in their lives is made possible by the very fossil fuels they profess to loathe. And they don’t see it–don’t understand it–don’t seem to comprehend it. We want to point out that, in their own words, they voted against support for the pipeline because they are prejudiced against fossil fuel energy and they seek to deny everyone else the option of using it…
Read More “Lunacy: NH Group Votes Against Pipeline Because of Global Warming”
Industrywide Issues | Research

The #1 Factor in Earth’s Temps/Weather (Hint: It’s Not Mankind)
May 12, 2015May 12, 2015

Do you know what the single biggest factor is that governs earth’s weather and temperatures across the globe? If you guessed burning fossil fuels and the amount of carbon in the atmosphere–you would be dead wrong. The single biggest factor affecting our climate has nothing to do with mankind–it is the sun. You know, that bright yellow thing in the sky? The sun heats the earth, and when the sun has sunspots–or radiation storms–that activity causes temps on ole Mom Earth to spike up. What happens when there is an absence of sunspots? What has happened over the past 20 years that there have been fewer and fewer sunspots–the earth stops getting warmer and begins to cool. Nearly all of the opposition to natural gas drilling and pipelines comes from people with an irrational hatred of fossil fuels–people who believe we’re about to fry because of “global warming.” That’s what drives opposition to good, wholesome, beneficial use of fossil fuels. So every now and again we highlight stories on so-called climate change–because that’s at the root of why most people oppose natural gas. Paul Driessen, author of the book “Eco-Imperialism: Green Power – Black Death” and Senior Policy Analyst with the Committee For A Constructive Tomorrow has written a top shelf article on the always excellent Natural Gas Now website. We think this article does a great job of explaining why the earth warms and cools–in cycles. So we’re bringing you his article here in total…
Read More “The #1 Factor in Earth’s Temps/Weather (Hint: It’s Not Mankind)”
Best of the Rest

Marcellus & Utica Shale Story Links: Tue, May 12, 2015
May 12, 2015May 12, 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: Tue, May 12, 2015”
Belmont County | Energy Companies | Greene County (PA) | Ohio | Pennsylvania | Rice Energy | Washington County

Rice Energy 1Q15 Earnings Call: 100% Focused on 3 Counties
May 11, 2015May 11, 2015

Last Friday MDN brought you the Rice Energy first quarter 2015 update (see Rice Energy Doubles Production 1Q15; Utica Flows; Ekes Out a Profit). On Friday, Rice’s upper management held an earnings call with analysts and as always, quite a bit more comes out in the call than in the official press release. Below is Rice Energy CEO Dan Rice’s prepared remarks on that call with some interesting details on both their Marcellus and Utica operations. Among the interesting comments: Rice is 100% focused on just three counties in the Marcellus/Utica…
Read More “Rice Energy 1Q15 Earnings Call: 100% Focused on 3 Counties”
Butler County | Carroll County | Energy Companies | Lawrence County | Ohio | Pennsylvania | Rex Energy

Rex Energy to Sell Acreage in OH & PA, Focus on 3 Counties
May 11, 2015May 11, 2015

Last week MDN brought you the first quarter 2015 update for State College, PA-based Rex Energy (see Rex Energy 1Q15: Production Up 61%, Revenue Down 33%, Gulf Coast Deal). Rex’s management held an earnings call later that day, and as is typical, a some important news was revealed on that call that was not included in the press release update. Namely, Rex is looking to sell it’s leased Utica Shale property in Belmont, Guernsey and Noble counties in Ohio. They also plan to sell leases in Westmoreland, Clearfield, and Centre counties in PA. When it’s all over and done, Rex will be concentrating on just three counties…
Read More “Rex Energy to Sell Acreage in OH & PA, Focus on 3 Counties”
American Energy Partners | Belmont County | Energy Companies | Lease & Royalty Payments | Ohio | XTO

Another Belmont County Landowner Threatened with Forced Pooling
May 11, 2015May 11, 2015

In April MDN told you about a landowner in Belmont County, OH who had questions and objections to phrasing in a proposed lease agreement from XTO Energy that talks about “nuisance oil” (see XTO Threatens Belmont County, OH Landowner with Forced Pooling). NEVER sign a lease without running it by a competent oil & gas attorney, and ALWAYS get the sometimes obscure terminology in a lease explained before you sign it. That’s our advice. We have another story along the same lines as the “nuisance oil” story–language that energy companies can’t or won’t explain to landowners. This one also comes from Belmont County, OH–perhaps the hottest of the hot places for drilling right now in the Utica Shale. A landowner from Martins Ferry, OH says XTO offered him an eye-popping $8,000 per acre signing bonus with 20% royalties, and Aubrey McClendon’s American Energy Partners offered $6,000 per acre with 20% royalties. Both have a “market enhancement clause” in the lease. The landowner didn’t like the clause, fearing it would reduce his royalties. The landowner was told by either XTO or AEP or both (we’re not sure), that they would force pool him if he didn’t sign. By force pooling him he would not get a signing bonus at all and only a 12.5% royalty. These kinds of strong-arm tactics give the industry a black eye in our opinion…
Read More “Another Belmont County Landowner Threatened with Forced Pooling”
Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Energy Services | Eureka Midstream

Magnum Hunter 1Q15: Prod. Up 66%, Financials Worse Than Expected
May 11, 2015May 11, 2015

Magnum Hunter Resources, now a pure play company focused on the Marcellus and Utica Shale region, released their first quarter 2015 update this morning. On the positive side we learn that production as up a healthy 66% in 1Q15 vs 1Q14. Production costs–how much it costs to produce the natural gas/oil/liquids, went down a big 36% year over year. And Magnum Hunter now owns ~80,000 net acres located in the Marcellus Shale and ~130,000 net acres located in the Utica Shale. Eureka Hunter, the company’s pipeline subsidiary, had new record high throughput volumes. But on the downside the company lost $0.57 per share. The “consensus” estimate was that they would lose $0.32 per share, so the performance of the company financially, if you want to think of it this way, was roughly twice as bad as Wall Street watchers thought it would be. Look for the stock price, which (before the opening) was trading at $1.86 per share–well off the typical $8 per share or so over the past year–to take a further beating…
Read More “Magnum Hunter 1Q15: Prod. Up 66%, Financials Worse Than Expected”
Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Spectra Energy | Statewide PA

More Marcellus Gas for Philly: Texas Eastern Pipeline Expansion
May 11, 2015May 11, 2015

A new pipeline expansion project that will bring more cheap, abundant and wholesomely fracked Marcellus Shale gas to the Philadelphia, PA area was announced late last year by Spectra Energy–and somehow it escaped our notice! The Greater Philadelphia Expansion Project will not involve building any new greenfield pipeline but rather will expand (using larger diameter pipes and looping new pipes next to existing pipes) for the Texas Eastern pipeline that already serves the Philly area. Currently, the Texas Eastern pipeline delivers 550,000 dekatherms per day (Dth/d) of natural gas into the greater Philadelphia region (roughly 550 million cubic feet per day). The expansion will add an additional 475,000 Dth/d (or 475 Mmcf/d)–nearly doubling capacity. The open season–the time when customers can officially sign contracts to reserve capacity–ended last Friday. No word yet on how that went. According to Spectra Energy, this is very early days yet in the life of this proposed project. Below we have more details about the project along with a map…
Read More “More Marcellus Gas for Philly: Texas Eastern Pipeline Expansion”
Energy Companies | Energy Corporation of America | Energy Services | WGL Holdings

Washington Gas $126M Deal to Bring Marcellus Gas to DC Suburbs
May 11, 2015May 11, 2015

Washington Gas, a natural gas utility serving customers in Washington, DC, Maryland and Virginia, announced a deal last week to purchase Marcellus Shale natural gas directly from 22 producing wells in Pennsylvania to be used to sell to Washington Gas’ customers in Virginia. Yes, some of that cheap, abundant and wholesomely fracked Marcellus Shale gas will be going to the Washington, DC suburbs. The deal is with Energy Corporation of America (ECA) for $126 million and runs for 20 years. It is the first such deal under a new 2014 Virginia law that allows such investments. Here’s the details…
Read More “Washington Gas $126M Deal to Bring Marcellus Gas to DC Suburbs”
Beaver County | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Processing Plants | Shell

Shell to Close on PA Cracker Plant Property in “Next Few Months”
May 11, 2015May 11, 2015

Last week we told you a positive sign that the proposed $2-$3 billion ethane cracker plant to be built by Shell in Monaca (Beaver County), PA was the joint information session recently held by the Dept. of Environmental Protection and Shell to discuss an air quality permit the DEP will issue for the project (see Progress: DEP & Shell Hold Info Session on PA Cracker Plant). Here’s yet another very encouraging sign: Horsehead Corporation, which still owns the site Shell would use to build the plant, said in their first quarter update that they expect to close on a sale of the property to Shell “within the next few months”…
Read More “Shell to Close on PA Cracker Plant Property in “Next Few Months””
Hydraulic Fracturing | Industrywide Issues | Regulation | Statewide VA | Virginia

Virginia AG Says Localities Can “Regulate” & “Prohibit” Fracking
May 11, 2015

Apparently Virginia’s Attorney General, Mark Herring, believes every county and town in the Old Dominion is populated with oil and gas experts. How else could he issue an advisory opinion that, in his opinion, every municipality in the state has the authority to regulate and/or prohibit fracking within its jurisdiction? Every other oil and gas producing state, save a bad decision made by New York’s highest court, says oil and gas regulation is solely under the purview of the state–and for good reason. The state employs oil and gas experts who know what they’re doing–what’s safe and what isn’t. How the process works. What pollutes and what doesn’t pollute. But AG Herring has thrown that out the window in Virginia…
Read More “Virginia AG Says Localities Can “Regulate” & “Prohibit” Fracking”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | PennEast Pipeline | Pennsylvania | Pipelines | Statewide PA

The Fight to Build the PennEast Pipeline: Arguments For & Against
May 11, 2015May 11, 2015

About a month ago MDN editor Jim Willis granted an interview with Kevin Mooney, on assignment writing for The Daily Signal, a publication of arguably the top conservative think tank in the country–the Heritage Foundation. Kevin wanted to talk about the PennEast Pipeline and the controversy surrounding what should be a straightforward and non-controversial project. These days anything to do with fossil fuels is being opposed by the likes of the Sierra Club and (in the case of the PennEast), regional anti-drilling groups like THE Delaware Riverkeeper–a group now being investigated by pro-drillers for possible violations of ethics laws in their dealings with the Delaware River Basin Commission. Kevin not only talked with MDN, he also spoke to Tom Shepstone of the always excellent Natural Gas Now, and Nicole Jacobs from the excellent Energy in Depth–both good friends of MDN’s Jim Willis. Kevin got the other side of the story too–from none other than Maya van Rossum, who is THE Delaware Riverkeeper herself (see Delaware Riverkeeper Gets a French Kiss from Phila. Inquirer). Kevin turns in a well-balanced and useful overview of the fight to build the PennEast. What are the arguments for it, and against it? We bring you Kevin’s article here…
Read More “The Fight to Build the PennEast Pipeline: Arguments For & Against”
Anti-Drilling/Fossil Fuel | Athens County | Columbia Pipeline Group | Energy Services | Industrywide Issues | Ohio | Pipelines

Ohio Univ to Get New Natgas Pipeline from Columbia Gas This Year
May 11, 2015May 11, 2015

Here’s a fact: So-called “sustainable” forms of energy like solar, wind and geothermal cannot, by themselves, provide all of the electric needs for a huge university like Ohio University, situated on an 1,850 acre campus in Athens, OH. Right now OU uses coal to meet its electric generating needs. They want to replace it with natural gas. But get this, ninny nanny “environmentalists” don’t like that idea. They’d rather have OU continue to burn dirty coal rather than build a pipeline to the campus and have the campus change over to natural gas. Which perfectly illustrates another fact: “environmentalist” opposition to natural gas springs from a twisted ideology and irrational hatred of fossil fuels, rather than concern for the environment or concern for the air people breathe…
Read More “Ohio Univ to Get New Natgas Pipeline from Columbia Gas This Year”
About MDN | Calendar

Calendar of Events for May 11 – Aug 10 (90 Days)
May 11, 2015May 11, 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 11 – Aug 10 (90 Days)”