Marcellus Drilling News

Indiana County | Industrywide Issues | Pennsylvania | Regulation | Statewide PA | Wastewater

Change in PA DEP Tone Toward Marcellus Industry Noticeable
March 19, 2015March 19, 2015

The newly reconstituted Pennsylvania Dept. of Environmental Protection has taken on a decidedly more antagonist tone with the Marcellus drilling industry, unfortunately. You can detect this new tone, no doubt fostered by its new Acting Secretary, John Quigley (formerly from the anti-drilling PennFuture), in its press releases. Like the one below. The story is that there is a coal refuse site in Indiana County, PA used to process and store waste from coal mining. Close to that site is a wastewater impoundment where leachate (nasty water coming from the coal refuse site) was collected and stored, creating a somewhat toxic sludge under the impoundment. In addition, some shale drilling wastewater was stored in that same impoundment. It appears that most of the environment hazards come from the coal waste leachate, but notice how shale brine is intertwined, mixed in, subsumed and painted with the same toxic brush as the coal waste leachate–as if brine has the same (or worse) toxicity (which it doesn’t)…
Read More “Change in PA DEP Tone Toward Marcellus Industry Noticeable”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Pipelines | Randolph County | Statewide WV | West Virginia

The Incoherence of WV’s Anti-Pipeline “Movement”
March 19, 2015March 19, 2015

There are perhaps a dozen or less people in West Virginia who show up at meetings to protest against several much-needed pipeline projects in the state. One of them, Lauren Ragland, is a little known protester who started a group called West Virginia Wilderness Lovers, which seems to have changed names recently to WV MATTERS. Ragland sometimes appears at meetings toting around a hula hoop (see Hula Hoops & Tall Tales from WV Anti-Drillers Opposed to Pipeline). The membership of her group has magically grown to “95,000 members” according to the latest communication. Yeah, right. Anywho, Lauren, for whatever reason, includes MDN on her press release distribution list. The latest release is included below with no changes. If someone can please tell us what it’s about, we’d appreciate a heads up. From what we can tell, it’s absolutely incoherent, as is much of the anti-drilling movement…
Read More “The Incoherence of WV’s Anti-Pipeline “Movement””
Alternative Energy | Dominion Energy | Energy Services | Industrywide Issues | Virginia

Grimm’s Fairy Tale: Big Tobacco + Big Oil Give Birth to….Solar?
March 19, 2015March 19, 2015

Here’s one weird and twisted bedtime story: Once upon a time there was a filthy Big Tobacco company. Big Tobacco hooked up with a wealthy (and equally filthy) Big Oil company and they had a baby. And the baby was…….solar panels?? Yep. Philip Morris, one of the largest cigarette manufacturers in the world has contracted with Dominion, one of the biggest utility/midstream companies in the Marcellus/Utica region, to install 8,000 solar panels at the Philip Morris facility in Chesterfield County, VA so they can make more cigs. It will be the largest solar installation to date in the state of Virginia. The only problem here is that the “bad guys” (Big Tobacco and Big Oil) are the heroes by installing solar instead of using natural gas. This is a real dilemma for the anti-drilling/anti-pipeline gang in the Old Dominion State. It may cause a brain hemorrhage…
Read More “Grimm’s Fairy Tale: Big Tobacco + Big Oil Give Birth to….Solar?”
Best of the Rest

Marcellus & Utica Shale Story Links: Thu, Mar 19, 2015
March 19, 2015March 19, 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, Mar 19, 2015”
Hydraulic Fracturing | Industrywide Issues | North Carolina | Regulation

Triassic Park: North Carolina Becomes 34th State to Frack Shale
March 18, 2015March 18, 2015

Yesterday some 120 new rules that govern oil and gas drilling in North Carolina–including a rule that lifts the moratorium on fracking shale deposits–went into effect. In just a couple of years NC was able to do what so far New York hasn’t been able to do in nearly seven years–it became the 34th state to allow shale drilling. While all shale layers are now open for business, the initial flurry of interest seems to be centered in the center of the state in Lee, Moore and Chatham counties. Popularly its called the Triassic Basin, although technically it’s part of a broader area called the Deep River Basin. Within the Triassic is a sub-basin called the Sanford, and it’s there that two companies are already “aggressively” leasing in the area…
Read More “Triassic Park: North Carolina Becomes 34th State to Frack Shale”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania | Statewide PA

Investigation: Delaware Riverkeeper Violates Non-Profit Charter
March 18, 2015March 18, 2015

Two days ago MDN brought you the story that two Philadelphia-area so-called non-profit organizations–THE Delaware Riverkeeper and the Clean Air Council–are not only interfering in a town on the opposite side of the state, they’ve caused the residents of that town to pay (so far) over $35,000 in legal fees (see Dela. RiverKeeper, Clean Air Council Cost Middlesex Residents $35K+). Our good friend Tom Shepstone from the always-excellent Natural Gas Now website did some digging and has found Delaware Riverkeeper is violating the terms of their non-profit charter by doing what they’re doing in Middlesex–something the IRS should investigate post haste…
Read More “Investigation: Delaware Riverkeeper Violates Non-Profit Charter”
Butler County | Carroll County | Energy Companies | Ohio | Pennsylvania | Rex Energy

Rex Energy 1Q15 Update: 6 New Wells Online in Butler County
March 18, 2015March 18, 2015

The first quarter of 2015 hasn’t quite come to an end just yet (that happens on March 31)–but it’s not stopping Rex Energy from issuing a first quarter operational update. Rex, headquartered in State College, PA, is mainly focused on drilling in the Marcellus/Utica–in Butler County, PA and Carroll County, OH. According to Monday’s update, Rex placed six more wells (on two pads) in Butler County into sales during 1Q15. Because of problems with a Blue Racer compressor station, Rex reports production in Carroll County was constrained in 1Q15–but they’re quick to add those problems are over and the gas is now flowing again. Here’s yesterday’s update…
Read More “Rex Energy 1Q15 Update: 6 New Wells Online in Butler County”
Energy Services | Industrywide Issues | Marathon Petroleum | NGLs | Ohio | Pipelines | Statewide OH | Utica Shale

Marathon Utica Wet Gas Pipeline Extends Open Season Extra 30 Days
March 18, 2015March 18, 2015

In December 2013 Marathon Petroleum, Ohio’s largest refiner, announced they would build a new Utica Shale pipeline, called Cornerstone (see Marathon Petroleum’s Newly Announced “Cornerstone” Utica Pipeline). Cornerstone will stretch nearly 50 miles from the MarkWest cryogenic processing plant in Cadiz, OH, heading northwest and connecting to M3’s fractionator plant in Scio and M3’s cryogenic processing plant in Leesville on its way to connecting with and terminating at Marathon’s refinery in Canton, OH. The pipeline will flow crude oil, condensate and natural gasoline. In February, Marathon launched an open season to sign up shippers for the new pipeline (see Marathon Announces Open Season on New Wet Gas Pipelines). The open season was due to end on March 13, but Marathon has extended it an extra month–a sign that there may not be as much interest as originally thought for this project (although Marathon says the extra time allows them to handle “significant interest” in the project)…
Read More “Marathon Utica Wet Gas Pipeline Extends Open Season Extra 30 Days”
Energy Services | Enterprise Products Partners

Enterprise Products Partners Just Raised $100M from Itself
March 18, 2015March 18, 2015

Enterprise Products Partners is a very big midstream company (pipelines and processing plants). They are the builder of the Appalachia-to-Texas Express (ATEX) ethane pipeline, which stretches from the Marcellus all the way to the Gulf Coast. Enterprise joins a list of companies doing creative things to bring cash through the door. On Monday, Enterprise announced that one division (or affiliate) of the company has purchased 3.2 million “units” (think shares of stock) in another division–bringing in $100 million that Enterprise will use “to fund a portion of its growth capital investments and for general company purposes.” That is, one set of investors just handed over $100 million to another set of investors in essentially the same company. Kind of mind-bender…
Read More “Enterprise Products Partners Just Raised $100M from Itself”
Chesapeake Energy | Energy Companies | Ohio | Statewide OH | Utica Shale

Chesapeake: Next Few Years Will Separate Weak & Strong in Utica
March 18, 2015March 18, 2015

Chris Doyle is executive vice president of operations for Chesapeake Energy’s northern division. He previously held a similar position with Anadarko Petroleum. Doyle recently spoke to Columbus Business First about Chessy’s prospects, indeed everyone’s prospects, in the Ohio Utica Shale. Sounding rather Darwinian, Doyle said we’re now entering a phase in the Utica where the strong will survive, and the weak won’t. Obviously he believes Chesapeake is in the “strong” category…
Read More “Chesapeake: Next Few Years Will Separate Weak & Strong in Utica”
Anti-Drilling/Fossil Fuel | Cuyahoga County | Industrywide Issues | Litigation | Ohio | Regulation | Statewide OH

OH Antis Handed Crushing Defeat in Broadview Hghts Home Rule Case
March 18, 2015March 18, 2015

We’ve commented before on the lawless tendencies of anti-drillers, particularly in Ohio where, when they lose a court case, they declare the government is illegitimate (see OH Anti-Drillers on Rampage after Supreme Court Home Rule Decision). It hasn’t been a full month since the Ohio Supreme Court ruling and now a second, crushing defeat for anti-fossil fuelers. Last week a Cuyahoga County Common Pleas Court judge struck down the Cleveland suburb of Broadview Heights’ so-called community bill of rights that bans all, including shale drilling. Once again, as with the Supreme Court “Munroe Falls” case, we see what sore losers anti-drillers are. If a court case like Broadview Heights doesn’t go their way, they immediately start talking about anarchy–that the government has “ceased to be legitimate.” These are not only stupid people, they’re dangerous too…
Read More “OH Antis Handed Crushing Defeat in Broadview Hghts Home Rule Case”
Chesapeake Energy | Energy Companies | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

Kathleen “Wag the Dog” Kane Says Chessy Investigation Almost Done
March 18, 2015March 18, 2015

One of the Democrats’ favorite tactics: When the spotlight is on you because of your own criminal behavior, try to turn it elsewhere. Quick, anywhere! Bill Clinton tried it when he was being dogged by the Monica Lewinsky scandal–he bombed an aspirin factory in the Sudan. It’s called Wag the Dog–as in create a new issue to distract people from the old issue you don’t want them to focus on any more. Apparently Pennsylvania’s Attorney General, Kathleen Kane, is using the same tactic. A grand jury says Kane broke the law herself in her role as AG by committing perjury (see PA Grand Jury Finds Anti-Drilling AG Kathleen Kane Lied Under Oath). Kane is fighting the charge in court by using Bill Clinton’s lawyer attack dog Lanny Davis. Apparently Lanny is now advising Kane to Wag that Dog too. So Kane is saying her investigation of Chesapeake Energy over shorting landowners out of royalties due to them is “almost wrapped up”–which of course has everyone buzzing and forgetting about her own criminal behavior…
Read More “Kathleen “Wag the Dog” Kane Says Chessy Investigation Almost Done”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Pipelines | Regulation

Marcellus Pipeline Likely Coming to S Jersey, Confirmation Vote
March 18, 2015March 18, 2015

Since early 2014, MDN has chronicled the almost impossible task that utility company South Jersey Gas set before themselves–running a very short 22 miles of pipeline to an electric generating plant that has been ordered to switch from burning dirty coal to burning clean Marcellus Shale gas (see Sierra Club, LWV Chooses Coal over NatGas in South Jersey). It’s an almost impossible task because the pipeline would need to run through 10 miles of scrub pine trees that some in the region believe are sacred. In particular, the NJ Sierra Club and the League of [Liberal Democrat] Women Voters are opposed to the plan and pressured the Pinelands Commission, the state regulatory body that oversees the area, to not approve the plan. NJ Gov. Christie then booted two of the members of the Pinelands Commission last May and nominated two new members, bringing us a step closer to achieving the impossible (see Marcellus Pipeline May Come to South Jersey After All). It’s taken almost a year, but the NJ Senate has just confirmed the second of those two new members, which most people read to mean that the Pinelands Commission will now vote to approve the South Jersey Gas pipeline…
Read More “Marcellus Pipeline Likely Coming to S Jersey, Confirmation Vote”
Anti-Drilling/Fossil Fuel | Commodity Price | Hydraulic Fracturing | Industrywide Issues

OPEC Says American Shale Boom Over by End of 2015
March 18, 2015March 18, 2015

It seems that our enemies–countries that belong to OPEC (Organization of the Petroleum Exporting Countries) are gloating they believe their strategy of allowing the price of oil to collapse is “working” and that they are driving shale drillers in the U.S. out of business. OPEC is predicting the shale boom will be “over by the end of 2015,” after previously predicting the same thing by the end of 2018. Excuse us while we pick ourselves up off the floor after laughing so hard! Will these people never stop underestimating American ingenuity and resilience? Will they always misunderstand and pooh-pooh American exceptionalism–that we are the exception to the rule, virtually the only country in history where liberty and acknowledgment of God-given rights for individuals allows those individuals freedom to pursue their dreams, creating a country free of government tyranny and unleashing creativity and passion so intense it results in achievements in this country that surpass those of all other countries combined? Fortunately for us, it seems the members of OPEC are obtuse and fail to grasp the true nature of the shale boom–how it got started, and why it will continue long after we’re all dead and gone…
Read More “OPEC Says American Shale Boom Over by End of 2015”
Best of the Rest

Marcellus & Utica Shale Story Links: Wed, Mar 18, 2015
March 18, 2015March 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: Wed, Mar 18, 2015”
Forced Pooling | Industrywide Issues | Regulation | Statewide WV | West Virginia

The Real Story of Why Forced Pooling Bill Failed in WV
March 17, 2015March 17, 2015

Yesterday MDN reported a story that (so far) few others have bothered to report: West Virginia’s House Bill (HB) 2688 failed to gain passage at literally the eleventh hour–one hour before the annual 60-day session ended (see Republicans (!) Help Defeat WV Forced Pooling at 11th Hour). We believed, and repeated, the reporting we saw on the final vote–that Republicans were largely responsible for the last minute defeat of the bill. That was inaccurate. We were contacted yesterday by Ron Hayhurst, head of the West Virginia Royalty Owners Association, who was himself very much a part of brokering what he believes is the best possible bill (HB2688) to protect mineral rights owners in the Mountain State. Ron told us the last minute change in the House vote had nothing to do with Republicans defecting–and he is right. Although House Del. Pat McGeehan (a Republican) voted “no” both times, he was not the hero of the day, as reported in some media accounts. The truth is this: WV Democrats got their knickers in a twist over losing several other votes last Saturday and they decided to punish the Republicans by denying them passage of this bill. The original House vote was 60-40 in favor of HB2688. The final vote was 49-49 tie (with 2 people missing in action for the final vote). Of the 11 who changed their votes (names below) from “yes” the first time to “no” the second time–all 11 were Democrats. There were two Republicans who changed from an original “no” to vote “yes”–but it wasn’t enough to eke out a win. Hayhurst says when forced pooling is passed (a question of when, not if) the bill may not be as favorable to mineral rights owners as this one was…
Read More “The Real Story of Why Forced Pooling Bill Failed in WV”