Marcellus Drilling News

Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania | Susquehanna County

PA Anti-Driller Scroggins Indicted with Felony Counts for Illegal Taping
May 14, 2015May 14, 2015

A little-known (outside of northeast Pennsylvania) anti-driller, Vera Scroggins, was fined $1,000 last month in Susquehanna County court and the judge told her she’s going to jail if she doesn’t pay it (see PA Anti-Driller Fined $1K for Trespassing on Cabot O&G Site, Jail?). This month she was permanently banned from trespassing on Cabot Oil & Gas property in the county (see PA Fracktivist Permanently Banned from Cabot Property). It seems Vera’s legal problems are not over yet. She’s just been indicted on several felony counts for allegedly secretly videotaping and recording a conversation with a lawyer that happened two years ago, without permission…
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Energy Companies | Hilcorp Energy | Industrywide Issues | Lawrence County | Pennsylvania | Regulation

Conflict of Interest Prevents Hilcorp Wellpad Approval, What Now?
May 14, 2015May 14, 2015

A strange ending occurred at the Pulaski Township (Lawrence County), PA Board of Supervisors meeting Monday night. The marathon four hour hearing saw Pulaski’s three Supervisors (actually, two of the three) approve one of two conditional use permits to allow Hilcorp to construct a wellpad on the property of Victor A. Litwinovich on Topper Hill Road–much to the consternation of anti-fossil fuel ninnies who were present. But when it came to approving a second Hilcorp wellpad–on the property of Sam Varano and his wife, Beverly, on Evergreen Road–the board couldn’t get a single motion among the three Supervisors to approve it. Why? Because one of the Supervisors is Sam Varano himself–a clear conflict of interest. A second Supervisor is Greg Carna, who owns land adjacent to Varano that is leased to Hilcorp and, presumably, would be included in the Varano well drilling unit–also a conflict of interest. That left the third Supervisor, Lori Sniezek, who won’t vote any Hilcorp matters because she is employed full-time by Hilcorp. Ethics rules barred any of the three from making a motion to approve the wellpad. Without a motion, Varano gavelled the marathon session to a close. What will happen next?…
Read More “Conflict of Interest Prevents Hilcorp Wellpad Approval, What Now?”
Air Quality | Anti-Drilling/Fossil Fuel | Carroll County | Industrywide Issues | Ohio | Research

Sham Air Study: “Unsafe Exposure” for Those Near OH Frack Sites
May 14, 2015May 14, 2015

We frankly don’t believe the studies being published in so-called peer reviewed journals anymore. These journals have proven, repeatedly, that they are biased and frankly have prostituted themselves out to Big Green causes. It’s not science that gets published–it’s propaganda and advocacy that’s now published. Here’s the latest example: a so-called study of air samples near shale drilling in Carroll County, OH finds that air pollution from fracking operations is deadly. It sneaks in the “c” word–cancer–implying those who live close to fracking operations “may have” an increased chance of getting cancer. The published paper is titled “Impact of Natural Gas Extraction on PAH Levels in Ambient Air” published in Environmental Science & Technology and written by researchers from Oregon State University. Yes, Oregon–a long way from home, no? There was also a single researcher on the team from the University of Cincinnati. Here’s what the authors themselves admit about their “research”: They hung a “small number” of air samplers (23 total) in “non-random” locations, and had homeowner “volunteers” pack up the samples and ship them to Oregon for study. Was there any science involved at all here? If there was, we sure can’t find it…
Read More “Sham Air Study: “Unsafe Exposure” for Those Near OH Frack Sites”
Energy Services | Industrywide Issues | Litigation | Pennsylvania | Pipelines | Regulation | Statewide PA | Sunoco Logistics

West Goshen, PA Reversal: Votes to Approve Mariner East Pipeline
May 14, 2015May 14, 2015

One by one the remaining communities that were fighting Sunoco Logistics and the company’s plans to re-purpose the Mariner East pipeline to flow natural gas liquids is disappearing. Sunoco is working with communities individually to address their concerns and resolve the issue to the point that the company must be near to completing the Mariner East project. As evidence, it was only last fall that West Goshen Township (near Philadelphia) took Sunoco Logistics to court in an attempt to stop them (see West Goshen’s Legal Shenanigans Try to Block Mariner East Pipeline). Yesterday West Goshen officials voted to accept a settlement agreement with Sunoco Logistics. West Goshen didn’t get everything they wanted and Sunoco didn’t either. But the agreement is done and the pipeline, which is already in the ground in West Goshen, will receive some safety enhancements and become operational…
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Energy Services | Williams

Williams is Buying Out Williams Partners Subsidiary for $13.8B
May 14, 2015May 14, 2015

In the oil and gas industry, in both the upstream (drillers) and midstream (pipelines) sectors, companies often split themselves into several different companies on paper. It all has to do with taxes and getting as much money as possible to investors. High finance stuff. The trend lately, however, seems to be going in the reverse direction. Instead of creating subsidiaries on paper, midstream companies are recombining into one larger whole. It happened last November when the stockholders (or unit holders) for four Kinder Morgan companies voted to combine into one mothership company (see Shareholders Approve Kinder Morgan Plan to Merge 4 into 1). A couple of things were notable about that recombination: One thing is that Kinder Morgan is the largest midstream company in the U.S. The second thing is that its founder, Richard Kinder, is the man who pioneered the use of MLPs or Master Limited Partnerships as a way of bumping up profits for shareholders. He reversed himself and knit it all back together, on paper. What is perhaps the country’s second largest midstream company, Williams, is now doing the same thing. Yesterday Williams announced that it is buying out its subsidiary Williams Partners LP in a stock deal valued at $13.8 billion. That is, Williams is buying itself–or rather a piece of itself–and streamlining the corporate structure of the company…
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Pennsylvania | Statewide PA | Statewide WV | West Virginia

Winners of $100K for 2015 Shale Gas Innovation Contest Announced
May 14, 2015May 14, 2015

A huge congratulations for the four winners of this year’s Annual Shale Gas Innovation Content, hosted by the Ben Franklin Shale Gas Innovation & Commercialization Center (SGICC). The four winners each received a check for $25,000 and bragging rights as being among the most innovative with products and/or services that are new, and make a difference in Marcellus and Utica Shale energy. The four winners are: Appalachian Drilling Services, EthosGen, Fairmont Brine Processing and PixController. Here’s the unique products/services each one provides…
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Industrywide Issues | Jobs | Research

Fracking Shale Will Spur Another 462K Plastics Jobs Next 10 Yrs
May 14, 2015May 14, 2015

Economists at the American Chemistry Council have just published a new report called “The Rising Competitive Advantage of U.S. Plastics” in which they state over the next 10 years U.S. jobs related to plastics manufacturing are expected to grow by 462,000. Why? Because of plentiful and affordable natural gas and natural gas liquids from shale. A decade ago the U.S. was one of the world’s highest cost producers of plastics. Today, because of shale, we’re one of the lowest cost producers. And it gets better every year. More and more manufacturing plants are relocating to the U.S. to take advantage of a cheap supply of plastics and low cost natural gas, made possible by shale energy. Plastics materials makers pay workers on average nearly $85,000 per year. Made possible by the miracle of fracking…
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Best of the Rest

Marcellus & Utica Shale Story Links: Thu, May 14, 2015
May 14, 2015May 14, 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, May 14, 2015”
Anti-Drilling/Fossil Fuel | Bradford County | Industrywide Issues | Pennsylvania | Research | Statewide PA | Wastewater

Reversal: Media Discredits Penn State Water Contamination Study
May 13, 2015May 13, 2015

The mask has been ripped off fractivist liars peddling what they pretend is science–and it’s been ripped off by mainstream media outlets including the Associated Press, USA Today, the International Business Times and (yes) The New York Times. Let us explain. Last week MDN brought you a story about a new research study that was ostensibly authored by Penn State researchers which found, using “non-traditional” methods of research, that wastewater leaking from an above-ground impoundment had migrated up to a mile and a half away and had contaminated three private water wells in PA–five years ago (see Penn State Finds Chemical Migration in 3 PA Water Wells from 2010). We told you how mainstream media, including the AP, had gone wild with excitement, endlessly repeating the story with the implication this is the smoking gun. The so-called research paper was published in the peer reviewed journal Proceedings of the National Academy of Sciences–a gold standard among academic journals. It seems one of the authors of that paper lied…
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Belmont County | Energy Companies | Gulfport Energy | Industrywide Issues | Litigation | Ohio

Barnesville, OH Hires Costly Columbus Lawyers in Gulfport Lawsuit
May 13, 2015May 13, 2015

In 2012, Barnesville (Belmont County), OH signed a contract with Gulfport Energy to sell Gulfport water from the Slope Creek Reservoir for 1 penny per gallon. Gulfport now wants to begin drilling in the area, following a joint venture agreement with Antero Resources. But Barnesville says the water level in the reservoir is too low and won’t sell. Gulfport sued and the whole matter has ended up in federal court (see Gulfport Energy Sues Barnesville, OH for Access to Water in Reservoir). As we later pointed out, the cost to Barnesville taxpayers because their political leaders “didn’t think” when they signed on the dotted line will now be very expensive (see Barnesville Officials “Didn’t Think” When Signing Gulfport Water Deal). Barnesville has just hired a high priced law firm from Columbus to represent them in court. How will Barnesville pay the new high priced lawyers? From money the town received from (yes) selling water from the reservoir to someone else…
Read More “Barnesville, OH Hires Costly Columbus Lawyers in Gulfport Lawsuit”
Energy Services | Industrywide Issues | Medina County | NEXUS Pipeline | Ohio | Pipelines

Medina, OH Landowner Says He’ll Meet NEXUS Surveyors Packing Heat
May 13, 2015May 13, 2015

Landowners in Medina County, OH received a letter from the NEXUS Pipeline a few weeks ago telling them that surveyors have the right to enter their property and conduct surveying–whether the landowner has granted permission or not. The letter said that landowners had until May 1 to sign a permission letter, and after that date surveyors would show up. A word of caution for NEXUS surveyors: York Township resident Walter Giebeler says he has a big gun collection with some nasty looking firearms and if surveyors show up on his property, the 80 year-old Giebeler is going to pay them a visit carrying several firearms as a means of threatening them…
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Energy Companies | Rice Energy

Rice Energy Floats 6M Shares of Stock, Looks to Raise $145M Cash
May 13, 2015May 13, 2015

Yesterday Rice Energy, a pure play exploration & production company focused on the Marcellus and Utica, is floating a new round of stock–6 million shares of it. It was only January 2014 when Rice launched its initial public offering of 44 million shares of stock and hauled in $924 million (see Rice Energy IPO Soars, Brings in $84M More Than Expected). The IPO was priced by underwriters at $21 per share and by the close of the bell on its first day of trading, the stock had gone to $21.90 per share (a 4% increase). How much does the company want for this new round of stock? They’ve priced it at $24.20 per share–which is pretty good considering the stock closed yesterday at $25.12 per share. If Rice gets the asking price of $24.20 per share, this latest round of new stock sales will haul in just north of $145 million in cash…
Read More “Rice Energy Floats 6M Shares of Stock, Looks to Raise $145M Cash”
Blue Racer Midstream | Dominion Energy | Energy Services | Industrywide Issues | Ohio | Pipelines | Statewide OH

Dominion Says Their Pipelines Gather 80% of All Ohio Natural Gas
May 13, 2015May 13, 2015

The Guernsey County Energy Coalition heard from utility and midstream giant Dominion last week at their regular meeting in Cambridge, OH. Mack Smith Jr., Dominion’s manager of commercial gas services, had some fascinating things to say. One of them was this: “Dominion gathers about 80 percent of all Ohio gas and interconnects with seven major pipelines to distribute gas to markets, and to sell storage services to marketers and end users.” Did you know that Dominion gathers 80% of all Ohio natural gas? We sure didn’t! Here’s some more pickings from what Smith said last Thursday…
Read More “Dominion Says Their Pipelines Gather 80% of All Ohio Natural Gas”
CONE Midstream | CONSOL Energy | Energy Companies | Energy Services | Noble Energy

CONE Midstream Looking to Add Customers Beyond CONSOL & Noble
May 13, 2015May 13, 2015

In August 2014, CONSOL Energy and Noble Energy formed a midstream joint venture called CONE Midstream to connect their Marcellus and Utica wells (see CONSOL & Noble Energy Form New Marcellus Midstream Company). By February of this year, CONE had already flown by the 500 million cubic feet per day of of throughput (see CONE Midstream’s Strong Beginning, Hits 500 Mmcf/d 6 Mos Early). CONE issued their first quarter 2015 update on Monday. Management also held an earnings call and on that call upper management stated they are now looking to open up their pipelines to flow gas for other companies. CONE CEO John Lewis said so far CONE has two customers: CONSOL Energy and Noble Energy. Lewis said they’re looking at taking on new customers as well as looking at possibly buying other pipelines already in place to add to their network…
Read More “CONE Midstream Looking to Add Customers Beyond CONSOL & Noble”
Air Quality | Energy Companies | Energy Services | Industrywide Issues | Litigation | Lycoming County | National Fuel | Pennsylvania | Regulation | Seneca Resources

PA DEP Loses its ‘Common Sense’ in Seneca Air Pollution Ruling
May 13, 2015May 13, 2015

Every now and again the legal definition of “adjacent” and “contiguous” pops up in lawsuits in Pennsylvania related to natural gas drilling. Two years ago we highlighted the issue (see Should PA Compressor Plants Miles Away be Considered “Adjacent”?). The argument revolves around lumping together several potential air pollution sources, like compressor plants and even well pads and pipelines–into one, common, larger source of air pollution for the purposes of regulation. Smaller sources are regulated by the PA Dept. of Environmental Protection (DEP) and larger sources, over a certain threshold, by the federal Environmental Protection Agency (EPA), with much stricter and more expensive standards. The PA DEP, for whatever reason, has gone after Seneca Resources and its parent company National Fuel Gas Co. for their operations in Lycoming County, PA. Even though Seneca’s well pads, pipelines and compressor stations are miles apart, because they are all owned by one corporate entity, the DEP wants them all lumped together into one source for pollution regulation. Although the combined single source would not trigger EPA regulation, Seneca/National Fuel Gas is suing the DEP to push back, on principle. The case will get a hearing in court this week…
Read More “PA DEP Loses its ‘Common Sense’ in Seneca Air Pollution Ruling”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Regulation | Statewide VA | Virginia

VA Newspaper Takes AG to Task for Decision Allowing Fracking Bans
May 13, 2015May 13, 2015

Earlier this week MDN told you about Virginia’s far-left Democrat Attorney General Mark Herring giving local municipalities the “right” to regulate and ban fracking (see Virginia AG Says Localities Can “Regulate” & “Prohibit”). What we didn’t know is that Herring’s “opinion” which is taken as law completely contradicts and undoes an opinion issued by his Republican predecessor, Ken Cuccinelli, who wrote that while municipalities can limit drilling to areas zoned for it, they can’t outright ban it. Herring, bowing to pressure from the kook fringe of his party, aims to change it. What gives us comfort is that we’re not the only ones to notice that Herring has stepped WAY over the line on this. None other than the editorial writers for the Norfolk Virginian-Pilot wrote an editorial yesterday that calls Herring to task for his recent overreach opinion on fracking…
Read More “VA Newspaper Takes AG to Task for Decision Allowing Fracking Bans”