Marcellus Drilling News

Anti-Drilling/Fossil Fuel | Industrywide Issues | Ohio | Research | Statewide OH | Utica Shale

Trout Unlimited Says Lake Erie Threatened by Utica Drilling
December 30, 2014December 30, 2014

Trout Unlimited (TU) might have once been populated with reasonable people, but it long ago left behind reasonableness and became a radical “green” group, funded and controlled by anti-drilling foundations (see Trout Unlimited, Other Groups Outted as Radical Green Groups). Even though TU has been exposed as having a radical, anti-drilling agenda, they still pretend, with the help of PBS and others, to be “reasonable” on the issue of shale drilling. When a member of TU says the group isn’t anti-shale, you know you just heard a 100% lie. They ARE anti-shale–to the core. We find it repugnant when mainstream media unquestioningly reports yet another TU spin story. The latest such story says that Utica Shale drilling in the Buckeye State is a “threat” to Lake Erie. TU has just released a so-called report (PowerPoint presentation, really) called “10 Special Places” (full copy embedded below). The “report” highlights 10 areas in the Eastern U.S. that TU says are threatened by Marcellus and Utica Shale drilling–including Lake Erie…
Read More “Trout Unlimited Says Lake Erie Threatened by Utica Drilling”
Industrywide Issues | Reserves (Proved and Unproved)

Defining O&G Reserves: Proved, Recoverable & In-Place
December 30, 2014December 30, 2014

A handy graphic and article from our favorite government agency, the U.S. Energy Information Administration, explains the differences in what companies call their “reserves”–how much gas and oil they have in the ground, ready to be extracted. You often hear or read of “proved reserves.” How does that category differ from “economically recoverable” and “technically recoverable” reserves? And what about this nebulous “oil and gas in place”? EIA’s helpful primer ‘splains it to us…
Read More “Defining O&G Reserves: Proved, Recoverable & In-Place”
Pennsylvania | Statewide PA

Shale Gas News Radio – December 27, 2014 [Audio]
December 30, 2014December 30, 2014

Every Saturday the one-hour Shale Gas News show airs on Scranton, PA’s 94.3 FM “The Talker” radio station. The show is co-hosted by Kevin Lynn of Linde Corporation and Bill desRosiers from Cabot Oil & Gas. MDN brings you the latest program show notes and recordings for Shale Gas News each week (well worth your time to listen). Here’s the latest program, recorded on Saturday, Dec. 27…
Read More “Shale Gas News Radio – December 27, 2014 [Audio]”
About MDN | Calendar

Calendar of Events for Dec 29, 2014 – Jan 11, 2015 [Free]
December 30, 2014December 30, 2014

Below are upcoming events for this week and next. To see the full list of future events, visit this page: //marcellusdrilling.com/calendar/.

NOTE: To have an item included, please email it to: calendar@marcellusdrilling.com.
Read More “Calendar of Events for Dec 29, 2014 – Jan 11, 2015 [Free]”
Best of the Rest

Marcellus & Utica Shale Story Links: Tue, Dec 30, 2014
December 30, 2014December 30, 2014

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, Dec 30, 2014”
Anschutz Exploration | Chemung County | Energy Companies | Industrywide Issues | Litigation | New York

Exclusive: Anschutz Wins 4 Yr-Old NY Methane Contamination Case
December 29, 2014December 29, 2014

An MDN exclusive: In 2010, at the beginning of widespread public consciousness about the Marcellus Shale and a time when drilling was just taking off in Pennsylvania, a New York City personal injury law firm smelled opportunity with a group of landowners in Chemung County, NY. Nine families living in Big Flats claimed that nearby gas drilling from Anschutz Corporation had “contaminated” their water wells (see our story at the time, Supposed “First Claim” Filed in New York Alleging Water Contamination from Hydraulic Fracturing Gas Drilling). The NYC law firm claimed in a press release (falsely) that the two wells drilled by Anschutz had been fracked (see Anschutz Exploration Responds to Lawsuit Claiming Drilling Operations Contaminated Water Wells in Big Flats, NY). The case started out in a lower court, called Supreme Court in New York (go figure) and eventually ended up in U.S. District Court in Western NY. Last week, U.S. District Court Judge Charles Siragusa dismissed the case against Anschutz…
Read More “Exclusive: Anschutz Wins 4 Yr-Old NY Methane Contamination Case”
Chesapeake Energy | Energy Companies | Lease & Royalty Payments | Southwestern Energy | Statewide WV | West Virginia

Southwestern Paid Chesapeake $12K/Acre for Land Signed @ $5/Acre
December 29, 2014December 29, 2014

Last week MDN told you that Chesapeake Energy closed on a deal to sell some 413,000 Marcellus Shale acres, mostly in West Virginia (some in Pennsylvania) to Southwestern Energy (see Chesapeake Using $1B from Southwestern Deal to Buy Back Stock). The deal ended up being worth $4.975 billion, discounted from the original $5.375 billion because Southwestern agreed not to sue Chessy for “title defects” when and should that occur. As we said at the time, we’re not sure if a $400 million discount is a good deal or not in the case some of the titles to leases aren’t free and clear. But the bigger story, in our humble opinion, is this: Chesapeake picked up some of those leases that originally paid landowners as little as $5 per acre and as much as $5,000 per acre. They just turned around and sold those same leases for $12,000 an acre. That made corporate raider Carl Icahn, Geppetto pulling the strings at Chesapeake, really really happy…
Read More “Southwestern Paid Chesapeake $12K/Acre for Land Signed @ $5/Acre”
Hydraulic Fracturing | Industrywide Issues | New York | Public Opinion | Regulation | Statewide NY

Q Poll: Majority of New Yorkers Support Cuomo’s Frack Ban
December 29, 2014December 29, 2014

If we New Yorkers are ever to one day see shale drilling and fracking in the Empire State, we must face the truth squarely in the face. We must be willing to admit to ourselves what the facts are (relative to the PR war we are in) and move on from there. A Quinnipiac University poll conducted shortly after Gov. Cuomo’s ignominious decision to ban fracking throws a bucket of cold water in our collective faces and is a wake-up call for those of us who support drilling (which is the correct and righteous position on this issue). The poll, conducted statewide, shows that NY state voters approve of Cuomo’s decision to ban fracking by a margin of 55% to 25% who oppose his decision. Republicans, sadly, support his decision by 42% with 40% opposed, and Democrats are simply in lock-step mode (they don’t think for themselves anymore, too much hassle): they support the man-child’s decision by 67% to 11% against the decision. Not one single party, gender, age or regional group had a majority that disapproved of Cuomo’s decision to ban fracking. That’s the bad news. Here’s the good news…
Read More “Q Poll: Majority of New Yorkers Support Cuomo’s Frack Ban”
Eclipse Resources | Energy Companies

Eclipse Resources Gets $440M from New Stock, Trims 2015 Capex 20%
December 29, 2014December 29, 2014

Some important news today from Eclipse Resources, an exploration & production company focused solely on the Marcellus and Utica Shale region. Eclipse reports raising $440 million in cash in a “private placement” of 62.5 million shares of common stock. The purchasers are EnCap Investments and certain members of the Eclipse management team. The company is also reporting they will lop off 20% of their capital expenditure (capex) budget in 2015 from 2014 levels–with a plan to spend $640 million on new drilling and associated activities. The Eclipse drilling mix is 60% natural gas, 20% oil & condensate, and 20% natural gas liquids…
Read More “Eclipse Resources Gets $440M from New Stock, Trims 2015 Capex 20%”
Energy Companies | Ethane | Industrywide Issues | Reliance Industries

Marcellus Ethane will Head to India Aboard 6 New Japanese Ships
December 29, 2014December 29, 2014

You may recall that all of the LNG (liquefied natural gas) that will be produced at the under construction export facility in Cove Point, Maryland will be sold to two countries: Japan and India (see Dominion’s Cove Point LNG Facility Achieves Important Milestones). Japan and India are teaming up again–but this time it’s for America’s ethane instead of methane. Reliance Industries Ltd., India’s single largest company of any kind (conglomerate that includes oil and gas drilling) has ordered up 6 Very Large Ethane Carriers (VLECs) for an undisclosed sum from Japanese company Mitsui. The VLEC ships will transport some 1.5 million tons of ethane per year to India, where it will be used to feed Indian ethane cracker plants. Since RIL has two joint ventures in the Marcellus, it’s a safe bet that some of that exported ethane will be coming from the Marcellus…
Read More “Marcellus Ethane will Head to India Aboard 6 New Japanese Ships”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Ohio | Regulation | Statewide OH

Water Withdrawals from Creeks Next Point of Attack for Antis in OH?
December 29, 2014December 29, 2014

Are water withdrawals the next point of attack for anti-drillers in Ohio? Perhaps. We noticed an interesting story where a pair of elected Democrats (one from the Ohio House, one from the Ohio Senate) are making noise about the drilling industry’s unrestricted right to withdraw water from creeks as long as they report it to the Ohio Dept. of Natural Resources (ODNR). The Dem politicians seem to be saying they would like to slap a new law in place to limit (or disallow) water withdrawals…
Read More “Water Withdrawals from Creeks Next Point of Attack for Antis in OH?”
Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

WashPo: NY Gov Cuomo “Ignoble”; Wrong on Frack Ban
December 29, 2014December 29, 2014

The Washington Post, one of the more liberal newspapers in the country and self-appointed arbiter of national news, released an editorial (penned by their very own reporters/editors) that floored us. The Post editorial says fracking is OK when done right, and New York Gov. Andrew Cuomo screwed up with his decision to ban fracking. Duck down! Was that a flock of pigs flying by?…
Read More “WashPo: NY Gov Cuomo “Ignoble”; Wrong on Frack Ban”
Industrywide Issues | Lease & Royalty Payments | Pennsylvania | Research | Statewide PA

Online Tool Tracks PA Production by Well, Calculates Royalties
December 29, 2014December 29, 2014

Several times in the past, MDN has touted what we consider to be the best online database for Pennsylvania landowners interested in tracking the production of gas wells in the Keystone State. It’s called MarcellusGas.org and for $20 a year you can all the data you can handle with regard to how much a given Marcellus well is producing–based on the semi-annual reports filed with the state Dept. of Environmental Protection. MarcellusGas.org sports not only data on historical production, but a royalty calculator that projects out what a well may produce based on the production of other wells in the area that have produced longer. And according to landowners who have compared the projections with their royalty checks, they say it’s pretty darned accurate…
Read More “Online Tool Tracks PA Production by Well, Calculates Royalties”
Energy Services | FirstEnergy | Statewide WV | West Virginia

FirstEnergy Investing $100M in Electric Projects for WV Marcellus
December 29, 2014December 29, 2014

FirstEnergy, headquartered in Akron, Ohio, is the parent of Mon Power, an electric utility serving 385,000 customers in 34 West Virginia counties. FirstEnergy announced last week they’re investing $100 million in new electric transmission projects to service the growing Marcellus and Utica Shale industry in WV. The projects include new high voltage power transmission lines and substations to serve natural gas processing plants (and other gas operations) in the region. As a consequence, not only will the Marcellus industry benefit, so too will local electric customers in WV…
Read More “FirstEnergy Investing $100M in Electric Projects for WV Marcellus”
Ethane | Industrywide Issues

Louisiana Ethane Cracker for Marcellus Gas Built with Intl Money
December 29, 2014December 29, 2014

In June 2014, MDN told you about a Range Resources deal to sell some of their ethane to a cracker plant, yet to be built, in Lake Charles, Louisiana (see Range Announces Multiple Agreements to Sell Natgas & Ethane). The Lake Charles cracker plant is part of a huge $8.9 billion petrochemical complex that will be built by energy/chemical company Sasol. In a press release last week, Sasol announced they’ve secured $4 billion in a “credit facility” (i.e. loans) for the project, although they don’t mention when construction will actually get under way. Aside from the fact that Marcellus ethane, in part, will feed the plant, what struck us as interesting is the international nature of the project. Some 18 international banks and investment firms are involved in the $4 billion credit deal. Sasol itself is a South African company; the Bank of Tokyo is the administrative agent for the deal; Bank of America is the account bank; HSBC (Hongkong and Shanghai Banking Corporation) is the “security trustee” for the $4B loan; and the Bank of Scotland is financial adviser. It’s a real panoply of international involvement!…
Read More “Louisiana Ethane Cracker for Marcellus Gas Built with Intl Money”
Best of the Rest

Marcellus & Utica Shale Story Links: Mon, Dec 29, 2014
December 29, 2014December 29, 2014

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: Mon, Dec 29, 2014”