Marcellus Drilling News

Energy Companies | Lawrence County | Pennsylvania | Rex Energy | Utica Shale

Rex Energy Drilling 1st Utica Shale Well in Lawrence County, PA
July 13, 2015July 13, 2015

Exciting news from “the little drilling company that could…and does,” as MDN likes to call Rex Energy. Last week Rex released an operational update with the big news that they will drill their very first dry gas Utica Shale well in Lawrence County, PA (near the Ohio border) in the third quarter of 2015. Rex also brought online another two Marcellus Shale wells in Butler County, PA…
Read More “Rex Energy Drilling 1st Utica Shale Well in Lawrence County, PA”
Baker Hughes | Energy Services | Halliburton | Industrywide Issues | M&A

Halliburton & Baker Hughes Announce a December Wedding Date
July 13, 2015July 13, 2015

Whatever happened to the shotgun wedding between Halliburton and Baker Hughes–two of the largest oilfield services companies in the United States? After all, the boards for both companies approved the “blissful union” back in March (see Halliburton & Baker Hughes Vote to Approve Shotgun Wedding). What happened is, it’s complicated. Such large buyouts between competitors–when it removes competition from the marketplace–involve approvals from the federal government as well as from governments in other countries where the two companies operate. In the U.S. it is the Dept. of Justice that must approve the merger and the DOJ is a) taking it’s sweet time, and b) forcing Halliburton to sell off some of its assets before they will approve the merger (see Halliburton Shotgun Divorce – Forced to Sell Certain Divisions). In a brief update last week, Halliburton and Baker Hughes announced they’re still mired in getting approvals but hope to officially tie the knot on December 1st…
Read More “Halliburton & Baker Hughes Announce a December Wedding Date”
Blue Ridge Mtn Res/Magnum Hunter | Energy Companies

Magnum Hunter Dodges Another Bullet, Banks Relax Cash Requirement
July 13, 2015July 13, 2015

In June MDN told you that Magnum Hunter Resources (MHR) was being told by its big bank creditors to get $65 million cash in hand by July 10th, or else (see Magnum Hunter’s Bankers Say Get $65M in Cash by July 10, Or Else). Or else what? Guess we’ll never know. Last week MHR announced they had gotten $55.6 million in hand and the bankers said aaaah, good ‘nuf. Whew. MHR dodged another bullet and can keep the doors open for a while longer…
Read More “Magnum Hunter Dodges Another Bullet, Banks Relax Cash Requirement”
Energy Services | Industrywide Issues | New York | Pennsylvania | Pipelines | Statewide NY | Statewide PA | Williams

Williams Announces New Upgrades to Transco Pipeline into NYC
July 13, 2015July 13, 2015

More yummy Marcellus Shale gas will be flowing to 500,000 additional New York City residents by the 2017/2018 heating season if an application just filed by Williams with the Federal Energy Regulatory Commission (FERC) gets approved. Last week Williams filed an application with FERC for the New York Bay Expansion Project. The $130 million project will expand capacity on the mighty Transco pipeline by installing new compressor station equipment, replacing a quarter mile of pipeline (in New Jersey), and upgrading meter and regulator stations at several locations in NJ, PA and NY. All work will be done in existing rights-of-way and at existing facilities–no new building or greenfield construction necessary. But that won’t stop the crazies from opposing it…
Read More “Williams Announces New Upgrades to Transco Pipeline into NYC”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Litigation | Medina County | NEXUS Pipeline | Ohio | Pipelines

NEXUS Pipeline Sues 4 Medina County Landowners for Survey Access
July 13, 2015July 13, 2015

A small group of Ohio landowners in Medina County are resisting requests by NEXUS Pipeline to allow surveyors on their property. We told you about one such old geezer who threatens to shoot surveyors coming on to his property (see Medina, OH Landowner Says He’ll Meet NEXUS Surveyors Packing Heat). Old Walt Giebeler, the geezer in question, can put his 12 gage shotgun away. NEXUS isn’t interested in his property. But they are interested in four other properties where landowners have refused to let them in to simply survey–so NEXUS has filed a lawsuit against them, asking a judge to allow them access. Without a survey, NEXUS can’t finish their application for the Federal Energy Regulatory Commission (FERC), which is, of course, the entire point of denying surveyors access…
Read More “NEXUS Pipeline Sues 4 Medina County Landowners for Survey Access”
Columbia Pipeline Group | Energy Services

Columbia Pipeline Signs $180M Deal with IBM for IT Infrastructure
July 13, 2015July 13, 2015

Now that Columbia Pipeline Group (CPG) is standing on its own two feet (see NiSource/Columbia Pipeline Divorce is Final), it’s time to find new vendors and suppliers. CPG hasn’t wasted any time. A little more than a week after separating from NiSource, CPG signed a major $180 million contract with IBM to supply the now independent CPG with information technology infrastructure and services. Think of it as new plumbing to help information flow faster through the organization. As the old saying goes, nobody ever got fired for buying IBM stock (or the corollary–from using IBM’s services)…
Read More “Columbia Pipeline Signs $180M Deal with IBM for IT Infrastructure”
Industrywide Issues | Pipelines | Regulation | Statewide WV | West Virginia

WV Establishes New Commission to Study Drilling/Pipeline Safety
July 13, 2015July 13, 2015

West Virginia Gov. Earl Ray Tomblin has, as he promised in his 2015 State of the State address, formed a new commission on oil and natural gas safety to study and make recommendations on how the industry in the Mountain State can get better at safety. Translation: What new laws and regulations can the state adopt to make things safer without destroying the industry in the process? Tomblin announced the members of this new West Virginia Commission on Oil and Natural Gas Industry Safety. Five of the 14 members are from the oil and gas industry. The group is charged with making a final proposal to Gov. Tomblin by Nov. 16…
Read More “WV Establishes New Commission to Study Drilling/Pipeline Safety”
Industrywide Issues | Pennsylvania | Pipelines | Regulation | Statewide PA

PA Gov Wolf Packs Pipeline Task Force with His Own Minions
July 13, 2015November 10, 2015

In May Pennsylvania “in over his head” Gov. Tom Wolf announced the formation of the Pipeline Infrastructure Task Force (PITF)–an effort to “promote unprecedented collaboration of stakeholders to facilitate the development of a world-class pipeline infrastructure system” (see Disaster on the Horizon: PA Gov Wolf Creates Pipeline Task Force). Translation: We need to slow down the rapid construction of all of these gathering pipelines and since there’s no regulations in PA state law to do it, we’ll create a “task force” to slow it down for us. Last week Wolf announced the 48 people who belong to his hand-picked task force. Not surprisingly, 14 of the 48 members (almost one-third) work for Wolf–in state government, drawing their paychecks from the state and working at the pleasure of Wolf who will fire them if they don’t do what he wants. Another nine work for either county, state or federal governments. That’s 23 of 48 (half) who work for the government. How many are from the oil and gas industry? Only 12 representatives from the O&G industry–and of that, only 6 of them are from pipeline companies, the very entities that will get regulated by this unofficial regulating body…
Read More “PA Gov Wolf Packs Pipeline Task Force with His Own Minions”
Energy Services | GASFRAC | Hydraulic Fracturing | Industrywide Issues | New York | Statewide NY | Tioga County (NY)

NY Landowners File to Frack Horizontal Well w/Waterless Tech
July 9, 2015

Wouldn’t you know? The very day that MDN goes on vacation, a HUGE story–at least for New York State–happens. So we’re back with a single posting today. Yesterday a press conference was held in the Town of Barton (Tioga County), NY to announce that a group of landowners flying under the name of The Snyder Farm Group (five families make up the group) have contracted with Tioga Energy Partners to drill a fracked Utica Shale well, and follow it up with drilling a fracked Marcellus Shale well, using liquefied petroleum gas (LPG or propane) and sand. The wells will not use water for fracking–and therefore, according to the landowners, avoid the ban on high volume fracking recently imposed by Andrew Cuomo and his underling Joe Martens at the state Dept. of Environmental Conservation (DEC). There is no doubt this is huge news throughout the state–and is giving heartburn to Cuomo and Martens. What cockamamie grounds can the DEC possibly use to refuse it? It’s a brilliant move by the landowners in Tioga County…
Read More “NY Landowners File to Frack Horizontal Well w/Waterless Tech”
About MDN

MDN on Vacation July 8-10
July 8, 2015July 7, 2015

Dear MDN Subscribers (and site visitors):

MDN will take a short break for summer vacation Wednesday, July 8 through Friday, July 10. We will be back at full strength, rested and recharged, on Monday, July 13. If anything of major consequence happens over the next three days, we will post. Otherwise, see you next Monday!

Jim Willis
Editor
Ashtabula County | Energy Services | Industrywide Issues | Ohio | Processing Plants | Velocys

Velocys GTL Company Suspends CEO for Possible Serious Misconduct
July 7, 2015January 7, 2016

Please see the note on this article for an update about this story.

In September 2013 MDN told you about an innovative new $300 million gas-to-liquids (GTL) plant being built in Ashtabula, OH that will convert Marcellus and Utica Shale gas into chemicals and diesel fuel (see Utica Shale Gas-to-Liquids Plant Planned for Ashtabula, OH and More Details on Ashtabula, OH Gas-to-Liquids Plant). The plant was going to be built by a Houston-based company called Pinto Energy using technology created by UK-based Velocys. But last June Velocys announced they were buying out Pinto Energy lock, stock and barrel–including (and primarily for) the Ashtabula GTL plant (see UK-based Velocys Buys Ashtabula, OH GTL Plant). The last we heard about the Ashtabula GTL plant was that the Ohio EPA issued a draft Lake Erie discharge permit in March 2015 and scheduled hearings about the plant (see OH EPA Issues Draft Lake Erie Discharge Permit for Ashtabula GTL Plant). Here’s the bombshell: Velocys has just suspended its Chief Executive Officer, Roy Lipski, pending an investigation into “allegations of serious misconduct”…
Read More “Velocys GTL Company Suspends CEO for Possible Serious Misconduct”
Butler County | Energy Services | Industrywide Issues | MarkWest Energy | Pennsylvania | Pipelines | Processing Plants

DEP Approves MarkWest Plan to Expand Bluestone Gas Processing Plant
July 7, 2015July 7, 2015

We wouldn’t classify it as one of the major miracles, but perhaps as a minor miracle. Something comparable to a picture of the Madonna weeping real tears. The Pennsylvania Dept. of Environmental Protection (DEP), under the leadership of DEP’s PennFuture Secretary John Quigley, has signed off on a MarkWest Energy request to double the size of the Bluestone natural gas processing facility in Butler County. MarkWest plans to build two new units at the facility (200 million cubic feet per day of capacity for each, or 400 Mmcf/d total). The first of the two will, if all goes as planned, come online by the end of this year…
Read More “DEP Approves MarkWest Plan to Expand Bluestone Gas Processing Plant”
Industrywide Issues | Pennsylvania | Statewide PA | Taxation

FUD Splatter: PA IFO Says Lower Impact Fee Revenue Coming in 2015
July 7, 2015July 7, 2015

In the midst of a political debate about whether or not to enact a severance tax comes another masterful one-two punch. First punch: the Democrat-controlled Pennsylvania Independent Fiscal Office (which is manifestly NOT “independent” but indeed is VERY dependent–on the Democrat Party) has issued an analysis that the world is ending for the impact fee assessed on Marcellus drillers. The IFO, spreading FUD (fear, uncertainty and doubt) says this year the impact fee is on track to raise the least amount of money it has raised since it’s introduction in 2012 (gasp!). How much less? Somewhere between $14 million and $33 million less (between 6-13% less). Why? Because drillers have slowed down and in some cases stopped drilling new wells due to low prices for natural gas. We note the IFO has never before, according to our recollection, issued such a forecast this early in the year. Why is that? Because the Dems need something/anything to try and bludgeon and bully Republicans into accepting the worst idea ever–taxing a single industry to transfer its wealth to another group of people who don’t earn any wealth on their own–teachers’ unions. Big Education only takes–they never give (except to transfer some of their taken money via union dues back the Democrat Party in a quid pro quo). The second punch then arrives right on cue, from a Democrat sycophantic news outlet publishes this breathless “news”…
Read More “FUD Splatter: PA IFO Says Lower Impact Fee Revenue Coming in 2015”
Pennsylvania | Statewide PA

Snapshot of 2015 PA Marcellus Activity So Far – Numbers are Down
July 7, 2015July 7, 2015

As part of an artful Democrat scheme to try and build support for PA Gov. Tom Wolf’s worst idea ever–a high severance tax on the Marcellus industry–the Pennsylvania “Independent” Fiscal Office (nothing of the sort) issued projections that cast fear, uncertainty and doubt that the state’s annual impact fee, which is really just another form of severance tax, will decrease this year (see our companion story today). In making their scary prediction, the IFO quotes several statistics about PA drilling as it stands so far in 2015 that MDN found enlightening (and we think you will too). Note: We’re not saying the IFO’s stats are wrong, we’re saying their conclusions are (with respect to a severance tax). The IFO-quoted stats tell us how much new well drilling is down (so far) in 2015, how many wells have been drilled but not completed, and how many drilled/completed wells have been turned off (“shut-in”)…
Read More “Snapshot of 2015 PA Marcellus Activity So Far – Numbers are Down”
Industrywide Issues | Lackawanna County | Landfills | Pennsylvania | Sand/Proppant

Fracsandphobia for Some Who Live Near Keystone Sanitary Landfill
July 7, 2015July 7, 2015

People are phobic (fearful) of the darnedest things. Some people are afraid of germs (germophobia). Some are afraid of spiders (arachnophobia). Some are even afraid of furry little kitty cats (ailurophobia). Seems that all of us have one phobia or another. Some folks who live near the Keystone Sanitary Landfill outside of Scranton, PA have a phobia over sand that may be hauled to the facility (an irrational fear of sand is eremikophobia). Because Keystone accepts drill cuttings and has, in the past, also been permitted to accept frac sand waste from drilling operations, some people who live in the area are afraid. Of what? That the sand may contain nasty fracking chemical residue and that residue will leach out of the ground and enter their bodies–ahhhhhh! Never mind that the residue in frac sand waste, chemicals like hydrochloric acid, is in such minuscule quantities it’s the equivalent of the amount of hydrochloric acid found in eye drops (yes, eye drops). But facts never get in the way of a good phobia–or a good lie spun by the likes of anti-drilling groups like Food & Water Watch that exist to stop legal, legitimate and safe businesses in the United States from operating…
Read More “Fracsandphobia for Some Who Live Near Keystone Sanitary Landfill”
Industrywide Issues | Pennsylvania | Pipelines | Supply Chain | Susquehanna County

Primoris Scores $10M Pipeline Contract in Susquehanna County, PA
July 7, 2015July 7, 2015

Primoris Services Corporation, a pipeline building company based in Dallas, TX, announced today they’ve landed a contract to build 6.8 miles of 16” diameter natural gas pipeline in Susquehanna County, PA. They’ll pick up a tidy $10 million for their efforts. Although Primoris doesn’t name the “midstream customer” in the announcement, it’s almost certainly Williams. While there are several smaller players in Susquehanna County when it comes to midstream and pipelines, Williams is pretty much the dominant force in that area and the only midstreamer we’re aware of that’s building anything right now…
Read More “Primoris Scores $10M Pipeline Contract in Susquehanna County, PA”