Marcellus Drilling News

Dominion Energy | Energy Services | Industrywide Issues | Pipelines | Statewide VA | Virginia

Atlantic Coast Pipeline Chooses Alternate Route in 2 VA Counties
May 19, 2015May 19, 2015

There’s been a course change for Dominion’s $5 billion Atlantic Coast Pipeline, a 550-mile natural gas pipeline that will bring Marcellus and Utica Shale gas south to Virginia and North Carolina. Yesterday Dominion announced they will shift the pipeline in two Virginia counties to the “alternate” route–in Augusta and Nelson counties. Landowners, who are being contacted now, will know the alternate routes as the Augusta Industrial Park variation, the Appalachian Trail South alternate, the East of Lovingston Connector alternate and the East of Lovingston alternate (see map below). According to Dominion, the new routes will have “the least impact to environmental, historic and cultural resources.” Other sources say the reason for the change is due to very vocal opposition in Augusta and Nelson counties. It appears the new route will make a different set of landowners unhappy–but perhaps fewer will be unhappy than before…
Read More “Atlantic Coast Pipeline Chooses Alternate Route in 2 VA Counties”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Litigation | MarkWest Energy | Pennsylvania | Pipelines | Regulation | Washington County

Cecil Twp Violates Court Order re MarkWest Compressor Permit
May 19, 2015May 19, 2015

MDN first started tracking the issue of MarkWest Energy’s desire/application to build a compressor station in Cecil Township (Washington County), PA all the way back in May 2011–four years ago (see MarkWest, Range Resources File Legal Appeal Over Denial of Permit for Gas Compressor Station in Cecil, PA). The case goes back even further to the fall of 2010 when MarkWest first filed for the permit. Since that time, Cecil has steadfastly denied MarkWest a permit to build the compressor. It took nearly four years of lawsuits (see our many stories here), but last fall a judge ruled that Cecil could not disallow the MarkWest compressor in an area zoned industrial (see MarkWest Wins Court Case to Build Compressor Station in Cecil, PA). The Cecil Town Board decided not to appeal the decision, but the zoning board has kept it bottled up since last October. The town has now exhausted all legal options and the court, in April, told the town they have 45 days to grant the permit. The clock is ticking and yet the zoning board is still dragging its feet and intends to violate the 45-day court order…
Read More “Cecil Twp Violates Court Order re MarkWest Compressor Permit”
Industrywide Issues | Pennsylvania | Statewide PA | Taxation

PA Gov. Wolf Throws Temper Tantrum at Groups Opposing Sev. Tax
May 19, 2015May 19, 2015

Pennsylvania Gov. Tom Wolf is a typical Democrat. When he doesn’t get his own way, he throws a temper tantrum and stomps his feet and behaves like a child. Yesterday he sent his chief of staff, Katie McGinty, off to the Pennsylvania Press Club to give “reporters” the narrative they should use to try and mass brainwash the PA population on why his 15% severance tax plan is such a great idea (see today’s companion story). Meanwhile, Wolf sent a temper tantrum letter off to the Pennsylvania Chamber of Business and Industry along with a 16 other PA business organizations to lambaste them for having the gall to disagree with his severance tax plan and point out its shortcomings…
Read More “PA Gov. Wolf Throws Temper Tantrum at Groups Opposing Sev. Tax”
Industrywide Issues | Pennsylvania | Statewide PA | Taxation

Wolf Chief of Staff: Marcellus Industry Lying About Tax
May 19, 2015May 19, 2015

According to Pennsylvania Gov. Tom Wolf’s chief of staff Katie McGinty, the Marcellus Shale industry is lying about its own economic health (or unhealth), and the only “responsible” thing to do is pass Wolf’s Marcellus-killing severance tax. That’s essentially what she said at a talk delivered to Democrat operatives–otherwise known as “reporters”–attending her speech at the Pennsylvania Press Club. “Reporter” Robert Swift was in attendance to take dictation/receive marching orders from McGinty and he “reports” this…
Read More “Wolf Chief of Staff: Marcellus Industry Lying About Tax”
Access Midstream Partners | Energy Services | Industrywide Issues | M&A | MarkWest Energy | Williams

Former Access Midstream CEO Reappears – on MarkWest Board of Dir
May 19, 2015May 19, 2015

Last June, Williams announced the biggest midstream news of the year–a deal to buy Access Midstream (the old Chesapeake Midstream) and fold it into their own operation (see Big News: Williams Partners Buying Access Midstream for $6B). After clearing all of the regulatory and financial due diligence hurdles, the two companies officially merged on February 2nd (see It’s Official: Williams and Access Midstream Tie the Knot). But before they did, Mike Stice, the CEO of Access and the President and COO of Chesapeake Midstream before it was Access, left Access as of January 1st of this year (see Access Midstream CEO Replaced by COO Under Williams Ownership). We don’t know if Stice’s departure was amicable or not. Stice’s #2 man, Chief Operating Officer Robert Purgason, took over as the head of Williams’ new Access division. Mike Stice has turned up again–this time on the board of directors for Williams’ arch competitor MarkWest Energy…
Read More “Former Access Midstream CEO Reappears – on MarkWest Board of Dir”
Industrywide Issues | Pennsylvania | Regulation | Statewide PA

PA Gov Wolf Appoints EQT’s Andrew Place to Public Utility Commission
May 19, 2015May 19, 2015

A few weeks ago Pennsylvania Gov. Tom Wolf, disastrous Democrat ruining the Keystone State, appointed someone we suspect is an anti-driller to head the state’s Public Utility Commission (PUC), Gladys Brown (see Anti-Drillers Cheer PA Gov Wolf’s New Appointment to Head PUC). The reason we think Ms. Brown is an anti-driller is her religious-like belief in man-made global warming coupled with a big endorsement from the odious anti-drilling National Resources Defense Council, which issued a press release positively gushing at Brown’s appointment. Perhaps to soften the criticism, perhaps because he’s mildly schizophrenic, Gov. Wolf has appointed another new member of the PUC–this time someone from the Marcellus Shale industry–Andrew Place. Andrew, you may recall, works for Marcellus driller EQT and was the founding and interim executive director of the Center for Sustainable Shale Development (see Important: Drillers & Enviros Form New Group, Launch Cert Program). Andrew seems to have the ability to “reach across the isle” and work with loony toons environmentalists, so it’s no surprise Wolf has tapped him for this important post…
Read More “PA Gov Wolf Appoints EQT’s Andrew Place to Public Utility Commission”
Best of the Rest

Marcellus & Utica Shale Story Links: Tue, May 19, 2015
May 19, 2015May 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: Tue, May 19, 2015”
Accidents | Chesapeake Energy | Columbiana County | Energy Companies | Industrywide Issues | Ohio | Utica Shale

Utica Rig Being Moved Leaked Drilling Oil for 27 Miles on OH Roads
May 18, 2015May 18, 2015

Traffic along an extended stretch of two Ohio highways in Columbiana County, OH was closed for nearly five hours on April 23 because a drilling rig that was moved leaked “a mineral-based synthetic, a non-hazardous drilling oil compound” for 27 miles as it was moved. Ouch. Somebody’s head will roll. The rig was being moved by a contractor for Chesapeake Energy. You might think somebody would notice something leaking over the course of 27 bloody miles! But apparently not. Fortunately the fluid/oil was not toxic or dangerous in any way, other than perhaps slipping on it…
Read More “Utica Rig Being Moved Leaked Drilling Oil for 27 Miles on OH Roads”
Energy Services | GreenHunter Resources | Industrywide Issues | Meigs County | Ohio | Regulation | Ritchie County | Wastewater | West Virginia

GreenHunter Resources 1Q15: Bets the Ranch on OH Injection Wells
May 18, 2015May 18, 2015

A lot of news to report about GreenHunter Resources, the fresh water and wastewater subsidiary of Magnum Hunter Resources, focused totally on the Marcellus and Utica Shale region. On Friday GreenHunter released their first quarter 2015 update and held an earnings call with analysts. If we could sum it up in our own layman’s terms–we’d say GreenHunter is currently treading water (pun intended) as they wait to turn around their lack of revenue by bringing online a series of wastewater injection wells in both Ohio and West Virginia. Although GreenHunter’s COO Kirk Trosclair rightly pointed out the company has gotten much more efficient–driving down costs–there’s no papering over the fact that GreenHunter’s revenues for 1Q15 were down 39% from the same quarter in 2014 ($5.1 million in 1Q15 vs. $8.5 million in 1Q14). Which seems odd as GreenHunter’s CEO, Gary Evans, said that the company currently turns down 20 to 25,000 barrels a day of water that they can’t handle because they are currently “full.” GreenHunter currently has two operating injection wells at their Mills Hunter facility, located in Meigs County, OH and one injection well operating in Ritchie County, WV. By the end of June they plan to have six wells operating at the Mills facility and a second well at the Ritchie location…
Read More “GreenHunter Resources 1Q15: Bets the Ranch on OH Injection Wells”
Energy Services | Industrywide Issues | New York | Pipelines | Statewide NY | Transco | Williams

With Williams Pipeline Completed, Fracked Shale Gas Flows to NYC
May 18, 2015May 18, 2015

More Marcellus Shale gas is now flowing to 1.8 million customers in Brooklyn, Queens, Staten Island and Long Island thanks to the completion of the Williams Rockaway Delivery Lateral and Northeast Connector projects. The Rockaway project added 3.2 miles of new Transco pipeline off- and on-shore (and related facilities) in New York (see Williams Files with FERC for New Access Point to NYC from Transco Pipeline). The Northeast Connector project added new compressionion equipment at three existing Transco facilities in New Jersey and Pennsylvania (see Williams Happy with FERC Progress on NE Pipeline Expansions). The two projects fit hand-in-glove. The Northeast Connector now delivers 100,000 dekatherms (or 100 million cubic feet, Mmcf) per day to the Rockaway Delivery Lateral. The Rockaway Lateral is delivering 647,000 dekatherms (or 647 Mmcf) per day to NYC residents of abundant, cheap, clean-burning FRACKED (mostly) Marcellus Shale gas…
Read More “With Williams Pipeline Completed, Fracked Shale Gas Flows to NYC”
Energy Companies | Rex Energy

Rex Energy CFO Buys Another 10K Shares of Rex Stock
May 18, 2015May 18, 2015

Rex Energy is a small but determined driller headquartered in State College, PA totally focused on the Marcellus and Utica Shale. We like to call Rex “the little energy company that can and does” when it comes to profitably tapping northeast shale. As we told you a few weeks ago, Rex is, like all drillers, facing some stiff challenges right now (see Rex Energy 1Q15: Production Up 61%, Revenue Down 33%, Gulf Coast Deal). Even though revenues are down for the company, Rex’s CFO Thomas Rajan still believes in the company. He just bought another 10,000 shares of stock himself for $5.45 per share ($54,500.00). That puts Rajan’s personal holdings of Rex stock at 190,000 shares, worth over $1 million. It’s good to see Rex’s upper management eating their own dog food…
Read More “Rex Energy CFO Buys Another 10K Shares of Rex Stock”
Chesapeake Energy | Columbiana County | Energy Companies | Industrywide Issues | Ohio | Roads

Chesapeake Refuses to Fix OH Road, Town Terminates RUMA
May 18, 2015May 18, 2015

Chesapeake Energy has told Franklin Township (Columbiana County), OH to stuff their RUMA where the sun doesn’t shine, in so many words. A RUMA is a Road Use Maintenance Agreement under which a driller agrees to maintain certain roadways in a town or county that they’re using to access drill pads. When you run heavy trucks over roads constantly, it damages the roads. Chessy had such an agreement with Franklin Township and since they aren’t drilling right now (any more?) in the town, they refused to fix a road Franklin thought they should fix. So Franklin has terminated the RUMA. Next step–lower the weight limit for trucks on the roads and bar Chesapeake trucks from using them. We wonder if Chessy has ever heard the phrase “cutting off your nose to spite your face”…
Read More “Chesapeake Refuses to Fix OH Road, Town Terminates RUMA”
Industrywide Issues | Statewide WV | Taxation | West Virginia

Breakdown of WV’s $188M Severance Tax & Where it Goes
May 18, 2015May 18, 2015

In April MDN shared the news that severance tax collections in West Virginia doubled in 2014 over 2013. We also told you that a paltry 7.5% of what’s collected actually stays in the counties where the drilling happens (see WV Severance Tax Doubles in 2014, 90% Disappears in Charleston). We have more of a breakdown for which counties raised what in severance tax in 2014 below. The interesting thing to MDN is this: Even though Charleston steals 90% of the money to redistribute as they see fit, Marcellus and Utica drilling in places like Wetzel County have lifted that county out of economic depression. Which goes to show that it’s not government showering select groups and geographies with money that creates wealth. It’s the private sector–the oil and gas industry–that is the engine of economic growth and wealth in this country…
Read More “Breakdown of WV’s $188M Severance Tax & Where it Goes”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Lebanon County | Pennsylvania | Pipelines | Regulation | Sunoco Logistics

Antis’ Zoning Appeal re Mariner East Pump Stn in Lebanon “Moot”
May 18, 2015May 18, 2015

Back in November MDN told you about anti-drillers in Lebanon County, PA who had succumbed to shiny object syndrome and transferred their irrational hatred of fossil fuels from the Williams Atlantic Sunrise pipeline project to the already-in-the-ground but getting repurposed Sunoco Logistics Mariner East pipeline (see New Target for Lebanon, PA Antis: Mariner East Pipeline). As part of converting Mariner East from an oil pipeline to flow natural gas liquids, including propane and ethane, from western PA to the Philadelphia area, some 31 pump and valve stations need to be constructed–one of them in West Cornwall in Lebanon County. Three local residents and an anti-drilling group called Concerned Citizens of Lebanon County filed an appeal with the zoning board to force the town to rescind permits they granted to allow the pump station (see Sunoco Presents on Mariner East Pump Station in Lebanon, PA). Last Thursday the West Cornwall Township Zoning Hearing Board declared “moot” that appeal. The anti-drillers are hopping mad…
Read More “Antis’ Zoning Appeal re Mariner East Pump Stn in Lebanon “Moot””
Commodity Price | Economic Impact | Energy Services | Industrywide Issues | Pennsylvania | Statewide PA | UGI Energy Services

SE PA Natgas Customers See Rates Drop 13.5% Thx to Marcellus
May 18, 2015May 18, 2015

Last winter in the northeast saw record-setting cold temperatures in many locations–particularly in Pennsylvania–and near-record demand for natural gas. That would normally mean the price of natural gas used to heat homes and power businesses would rise–significantly. Instead, if you’re among the 178,000 customers who live or work in one of 15 southeastern PA counties served by UGI Penn Natural Gas, your rates are about to go down–again. How much? By an average of 10.3% as of June 1st and another 3.2% on December 1st (total of 13.5% in 6 months). Why? Because UGI now sources ~90% of its natural gas from the cheap, abundant, clean-burning, homegrown, FRACKED Marcellus Shale. Even with record low temps and record high demand, your price just keeps dropping. UGI customers in other PA regions (northeast and central PA) are also seeing rates drop…
Read More “SE PA Natgas Customers See Rates Drop 13.5% Thx to Marcellus”
Commodity Price | Energy Services | Industrywide Issues | Pennsylvania | Supply Chain | UGI Energy Services | Union County

Marcellus Shale Gas Road Show Visits Union County, PA
May 18, 2015May 18, 2015

Last Friday approximately 100 business leaders gathered in Lewisburg (Union County), PA for the “Think About Energy” briefing hosted by America’s Natural Gas Alliance (ANGA), UGI Utilities, Inc., UGI Energy Services and the Greater Susquehanna Valley Chamber of Commerce. The energy briefing is the seventh such briefing in a series being held throughout PA over the past year. The briefings focus on the supply outlook for natural gas and natural gas liquids, as well provide information on production, consumption trends, utilization opportunities and infrastructure developments. That is–the briefings help those who own or run businesses use and profit from the availability of cheap, abundant Marcellus Shale gas and figure out how to plug into the supply chain. Such sessions are not uncommon. What is uncommon about this session is it’s location–Union County–which is south of Lycoming County and east of Centre County. Union has not (yet) seen a single Marcellus Shale well drilled…
Read More “Marcellus Shale Gas Road Show Visits Union County, PA”