Marcellus Drilling News

Energy Companies | Hilcorp Energy | Industrywide Issues | Lawrence County | Mercer County | Pennsylvania | Pipelines

Hilcorp to Build New Gathering Pipeline in NWPA
April 2, 2015April 2, 2015

Hilcorp remains very active in northwestern PA. The company has filed paperwork and plans to build several new pipelines in Lawrence and Mercer counties. They will build a buried gathering line (what they call the Weiser-Varano pipeline), a buried “fluids pipeline” and an above-ground temporary water pipeline. The details as we know them…
Read More “Hilcorp to Build New Gathering Pipeline in NWPA”
Anti-Drilling/Fossil Fuel | Education | Industrywide Issues | New York | Onondaga County

Syracuse U Divests from Fossil Fuels, NYU Says “Irresponsible”
April 2, 2015April 2, 2015

Silly (and frankly stupid) “green” students at universities who apparently don’t have enough homework to keep them busy have lately been protesting and attempting to get the schools their parents pay so much money to, to divest from any stock holdings in evil, filthy, nasty fossil fuel companies. No, we’re not making this up. These idiots, who believe in global warming fairy tales, are demanding, like the petulant undisciplined children they are, that universities pull out a gun and just shoot themselves in the head financially. And you know what? Syracuse University has just done it. They’ve just committed financial suicide by bowing to pressure from children and divesting any fossil fuel stocks from their $1.2 billion endowment. Forcing Coach Jim Boeheim to retire, and now divesting from fossil fuels? We’re officially no longer Orange basketball fans. Meanwhile, the divest from fossil fuels issue was extensively studied by New York University–and they concluded to do such a thing is nuts…
Read More “Syracuse U Divests from Fossil Fuels, NYU Says “Irresponsible””
Best of the Rest

Marcellus & Utica Shale Story Links: Thu, Apr 2, 2015
April 2, 2015April 2, 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, Apr 2, 2015”
Accidents | Energy Services | Industrywide Issues | NGLs | Pennsylvania | Processing Plants | Statewide PA | Sunoco Logistics

Sad Day: Worker Killed at Marcus Hook Refinery NGL Project
April 1, 2015April 4, 2015

It’s always a sad day when we report a death related to the Marcellus/Utica industry. Thankfully it doesn’t happen often, but the fact it happens at all is almost too much to bear. We know it’s not realistic to expect no fatalities, but still… On Monday afternoon around 2:30 pm a worker at the former Marcus Hook refinery–which is being converted into a natural gas liquids terminal–was killed after a pylon fell on him. The worker’s name has not yet been released, but it is reported he was in his 50s and from New Jersey and worked for engineering firm AECOM, a contractor working at the site. In a profoundly inappropriate manner, a member of the anti-drilling group Protecting Our Waters jumped on the death as an opportunity to push her anti-drilling message…
Read More “Sad Day: Worker Killed at Marcus Hook Refinery NGL Project”
Economic Impact | Energy Services | Industrywide Issues | PennEast Pipeline | Pennsylvania | Pipelines | Statewide PA

PennEast Payola? Buying Support One Community at a Time
April 1, 2015April 1, 2015

In March 2014 MDN wrote about Williams spreading money around with local fire departments and other non-profit organizations in communities where they want to build the much-needed Constitution Pipeline (see Constitution Pipeline Payments to Groups – Donations or Payola?). The Constitution ended up paying out more than $1 million in grants to local groups. Our point at that time was maybe Williams should wait until the pipeline is approved and built before they hand out money. It just seemed to us like a not-so-transparent attempt at influencing (buying?) support for the project. Do we need that support? Sure! But wait until the pipeline is approved and built, and THEN help out those communities and be a good corporate citizen. Seems our advice fell on deaf ears. PennEast Pipeline is now trying the same tactic. Yesterday PennEast announced another round of community grants–handing out $70,000 this time around. PennEast is giving $5,000 each to 14 different organizations, most of them fire & ambulance departments in Pennsylvania and New Jersey…
Read More “PennEast Payola? Buying Support One Community at a Time”
Braxton County | Doddridge County | Energy Services | Industrywide Issues | Lewis County | M3 Midstream | Momentum | Pipelines | Statewide WV | West Virginia

M3’s New Stonewall Gathering System Extends Existing AGS in WV
April 1, 2015April 1, 2015

All the way back in 2011 MDN told you about M3 Midstream’s Appalachia Gathering System (AGS), a local gathering pipeline system to serve dry gas production areas in northern West Virginia and southwestern Pennsylvania (see New Marcellus Shale Pipeline Coming to Southwestern PA, Northern WV). AGS was slated to be approximately 130 miles of large diameter gathering pipeline spanning Washington and Greene counties (in PA), and Monongalia, Marion and Harrison counties (in WV). Since that time we haven’t heard much–the project has flown mostly under the radar. It has, however, popped back up in the news in WV, so we thought it would be a good time to give you an update on the project…
Read More “M3’s New Stonewall Gathering System Extends Existing AGS in WV”
Butler County | Energy Companies | Pennsylvania | Rex Energy

Struggling Rex Energy Gets JV Partner, Slashes Budget Again
April 1, 2015April 1, 2015

Rex Energy, our little energy company that could (and does) continue to drill in the Marcellus/Utica, is struggling. Rex has, like all companies, been hit with low commodity prices for natural gas, a shortage of pipelines to get the gas to markets, and consequently has scaled back on plans for 2015. Although Rex had a great 2014 with production up some 66% over 2013, in December the company announced they would trim the 2015 budget by 44% over 2014 (see Rex Energy Reduces 2015 Marcellus/Utica Drilling Budget by 44%). In February Rex was included in a list of 19 companies on one analyst’s “death list”–meaning they owe a lot more money than they bring in–in Rex’s case they owe 5 times as much as they bring in annually (see 19 Oil/Gas Companies on “Death List” – 8 are in Marcellus/Utica). Shortly after that, Rex put 28K PA acres up for sale in their non-core area, to raise cash (see Rex Energy Looks to Sell 28,300 Marcellus Acres in Bid to Raise $). And that brings us to yesterday, when Rex announced they are slashing their drilling budget again, by another 30%, and they’ve taken on a joint venture partner for some of their acreage in a bid to keep drilling…
Read More “Struggling Rex Energy Gets JV Partner, Slashes Budget Again”
Forced Pooling | Industrywide Issues | Regulation | Statewide WV | West Virginia

WV Forced Pooling Bill HB 2688 May Get Another Vote This Fall
April 1, 2015April 1, 2015

After five years of trying, it seemed that a forced pooling bill was finally going to pass in West Virginia during the 2015 WV 60-day legislative session. But at the literal eleventh hour of the last day of the session, it failed (see The Real Story of Why Forced Pooling Bill Failed in WV). The bill this time was House Bill (HB) 2688 and was introduced and championed by Delegate Woody Ireland, R-Ritchie. Ireland was a bit dumbstruck after HB 2688 failed and he didn’t have much to say. But Woodie is talking now–and talking about re-introducing the bill this fall…
Read More “WV Forced Pooling Bill HB 2688 May Get Another Vote This Fall”
Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Regulation | Statewide PA | Transco | Williams

It’s Official: Williams Files with FERC for Atlantic Sunrise Pipeline
April 1, 2015April 1, 2015

It’s finally time for the sun to rise on Williams’ Transco Atlantic Sunrise pipeline project. It seems like we’ve covered the story of Atlantic Sunrise forever–a $2.1 billion project consisting of compression and looping of the Transco Leidy Line in Pennsylvania along with a greenfield (brand new) pipeline segment of 178 miles, called the Central Penn Line, connecting the northeastern Marcellus producing region to the Transco mainline near Station 195 in southeastern Pennsylvania (see Atlantic Sunrise Will Pump $1.6B into Economy, Create 8K Jobs). We’ve covered many of the anti-drilling nutball antics in opposing the pipeline (see Convicted Lancaster Protesters Taunt Williams After Court Date). Even though Williams has conducted countless meetings and filed reams of paperwork–it was only yesterday that Williams filed the full, complete, and official application with the Federal Energy Regulatory Commission (FERC), asking FERC to approve the project…
Read More “It’s Official: Williams Files with FERC for Atlantic Sunrise Pipeline”
Energy Services | Industrywide Issues | Kinder Morgan | New York | Pipelines | Statewide NY | Tennessee Gas Pipeline

Power Lines and Pipeline Corrosion – A Quick MDN Primer
April 1, 2015April 1, 2015

MDN told you yesterday about a story in the anti-drilling Albany Times Union newspaper that seeks to spread FUD–fear, uncertainty and doubt–about the proposed Kinder Morgan Northeast Extension Direct pipeline (see Albany Times Union Says Electric Lines will Corrode NED Pipeline). The meme trying to be spread by the TU is that if Kinder moves forward with a plan to co-locate the pipeline along miles and miles of high voltage power line corridors, the power lines will eat away the pipeline and turn it into a ticking time bomb that will one day explode. That’s our words, not the TU’s words, but that’s clearly the impression the TU reporter attempts to convey in the article. We poked fun at the notion that electric lines corrode pipelines. However, it does happen! No less than three sharp MDN readers, one of them from the federal government, emailed with information about the phenomenon of pipeline corrosion from AC power lines. The upshot is that a) this is a known issue, b) there are ways to safely mitigate any potential corrosion from AC power lines, and c) pipelines have been co-located along power line corridors for decades–safely…
Read More “Power Lines and Pipeline Corrosion – A Quick MDN Primer”
Best of the Rest

Marcellus & Utica Shale Story Links: Wed, Apr 1, 2015
April 1, 2015April 1, 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, Apr 1, 2015”
Beaver County | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Processing Plants | Shell

PA DEP Signals Approval for Shell Ethane Cracker Air Quality Plan
March 31, 2015March 31, 2015

We understand it’s a really big commitment to decide to spend $2 billion or more on a single project, like the Shell ethane cracker plant announced in June 2011 that may (or may not) be coming to the Marcellus (see Shell Commits to Building a Billion Dollar Chemical Plant in the Marcellus Region of U.S.). But after a while (nearly four years!), the waiting grows tiresome. In March 2012 Shell settled on a potential site in Monoca (Beaver County), PA, about 30 miles northwest of Pittsburgh (see Shell Announces Location of Ethane Cracker Plant). In June 2012, a Shell official said a final decision on whether or not to build was “18 to 24 months away” (see Shell: Final Decision on Cracker Plant Still 18-24 Mo. Away). Er, right. The end of the 24 months was nine months ago. Still, there have been some positive signs, including a very positive sign from last Saturday…
Read More “PA DEP Signals Approval for Shell Ethane Cracker Air Quality Plan”
Lease & Royalty Payments | Pennsylvania | Statewide PA | Westmoreland County

Urban Drilling in the Marcellus/Utica? Yes, in Some Locations
March 31, 2015March 31, 2015

Is Marcellus (and Utica) Shale drilling going urban? Coming to cities and towns? In some cases, the answer to that question is, yes! Don’t look for drilling rigs to pop up in the city limits of Pittsburgh (it’s banned there anyway). But for smaller towns and cities surrounded by farmland and open fields, it’s not only possible, it’s actually happening. At least the leasing of those smaller urbanized areas is happening. Take West Leechburg (Westmoreland County), PA, for example…
Read More “Urban Drilling in the Marcellus/Utica? Yes, in Some Locations”
Industrywide Issues | Pennsylvania | Statewide PA | Taxation

Pittsburgh Economic Leader Says Wolf Severance Tax Really 15% Rate
March 31, 2015March 31, 2015

Last Friday Dennis Yablonsky, the CEO of the Allegheny (PA) Conference on Community Development, had a rather sobering and shocking assessment of PA Gov. Tom Wolf’s high severance tax. He said the effective rate of Wolf’s severance tax is actually 15%, not the 5% touted (lied about) by Wolf and his DEP Acting Secretary John Quigley. According to Yablonsky, the tax as proposed is just too high and will (our words) kill the industry in the state…
Read More “Pittsburgh Economic Leader Says Wolf Severance Tax Really 15% Rate”
Industrywide Issues | Ohio | Statewide OH | Taxation

OH Gov “Tax Oil and Gas” Kasich Wants to Run for White House
March 31, 2015March 31, 2015

Go Tax Young Man! Er, ah, no. “Go West young man! Land on the moon! Go to Mars!” Those were the words of the very animated, very self-important and very deluded Ohio Gov. John Kasich last week as he spent time…in Ohio, where he’s governor, trying to run his state? No. Kasich spent last week in New Hampshire where he’s trying to gin up excitement for a potential run as president on the GOP ticket. Earth (and conservatives) to RINO Kasich: There’s no way in &@!! conservative Republicans will vote for you in an election. We’re done voting for RINOs (like Bob Dole/John McCain/Mitt Romney/Jeb Bush/Chris Christie/John Kasich). We will only swing the lever for real conservatives, not people who want to tax the oil and gas industry into oblivion as you’re proposing to do Gov. Kasich. If a RINO like Kasich is at the top of the ticket, the Republicans will lose the presidency, once again, because conservatives will stay home–including MDN. Here’s more about John “foreigner hunter” Kasich on the campaign trail, hoping to spark interest in a potential run for The White House…
Read More “OH Gov “Tax Oil and Gas” Kasich Wants to Run for White House”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Kinder Morgan | New York | Pipelines | Statewide NY | Tennessee Gas Pipeline

Albany Times Union Says Electric Lines will Corrode NED Pipeline
March 31, 2015March 31, 2015

In an effort to bend over backwards, forwards and in any direction that will help, Kinder Morgan continues to have multiple talks with multiple communities in an effort to build their $6 billion extension to the Tennessee Gas Pipeline, a project called Northeast Energy Direct (NED). The pipeline would stretch from New York State through Massachusetts into New Hampshire before re-entering Massachusetts and terminating near Boston. It aims to bring desperately needed natural gas to New England. Yesterday we told you about the gutsy move by a local gas utility in MA that said if the pipeline isn’t built, no gas new customers (and no new gas appliances for existing gas customers) would be allowed–indefinitely (see Guts: No New Pipeline in MA? Then No New Natgas for Utility Customers). One of the ways Kinder hopes to minimize the project’s impact is by running the pipeline through existing rights of way where electric power lines are run. But ninny nanny anti-drillers have a counter argument even for that. Get this (it’s really quite funny): The anti-drilling Albany Times Union is reporting that the presence of power lines way up in the air will corrode pipelines deep under ground–so say “numerous scientific studies.” The TU refers to just one such study, written for Israel (not even a North American study). We’d say the TU is diggin’ deep in their propaganda advocacy to prevent shale drilling and pipelines…
Read More “Albany Times Union Says Electric Lines will Corrode NED Pipeline”