Marcellus Drilling News

Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Washington County

Peters Twp, PA Pretends to Debate Ordinance to Allow Drilling
February 3, 2015February 3, 2015

Peters Township, in Washington County, PA, continues to “struggle” with whether or not they will allow Marcellus Shale drilling within their borders. Peters, you may recall, is one of the seven selfish towns that sued the state over the zoning provisions in the Act 13 law, eventually winning at the PA Supreme Court level (see PA Supreme Court Rules Against State/Drillers in Act 13 Case). That “victory” has proven to be a disaster in more ways than one. The court decision does, however, require municipalities with districts zoned industrial to allow drilling, albeit those municipalities have plenty of options to continue stopping it by road use restrictions, etc. It seemed like Peters had finally come to grips and was looking for ways to allow shale drilling (see Peters Twp, PA Once Sued to Stop Act 13, Now Considers Drilling). However, recent comments by town leaders and an email from an MDN reader indicate Peters remains as hardened against drilling as ever…
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Industrywide Issues | Pennsylvania | Statewide PA | Taxation

PA Towns Don’t Like Gov. Wolf’s Severance Tax Plan
February 3, 2015February 3, 2015

As newly enthroned PA Gov. Tom Wolf considers his misguided attempt at ramming through a Marcellus Shale-killing severance tax, he better talk to PA’s townships–all of which receive at least some money from the current impact fee. If the state suddenly yanks away impact fee revenue from those towns, many of which rely on that money in their annual budgets, Moody’s Investors Service says such an event will be “a credit negative” for those local governments. In other words, you can expect a Moody’s downgrade–making any bonds issued by PA towns more expensive, requiring more taxpayer money to pay back…
Read More “PA Towns Don’t Like Gov. Wolf’s Severance Tax Plan”
Access Midstream Partners | Energy Services | Industrywide Issues | M&A | Williams

It’s Official: Williams and Access Midstream Tie the Knot
February 3, 2015February 3, 2015

Several weeks ago MDN told you that yesterday, Feb. 2, would be the big wedding day for the merger (actually takeover) of Access Midstream by Williams (see Wedding Day: Williams & Access Midstream Get Hitched on Feb 2). The wedding took place as planned and the marriage is now happily consummated. The groom was Williams (grooms are always men…pushy and domineering ya know). The bride was sweet Access Midstream, previously known as Chesapeake Midstream. Bride Access took the Williams name as of yesterday, creating a midstream behemoth whose market capitalization will come close to rivaling the country’s largest midstream company, Kinder Morgan…
Read More “It’s Official: Williams and Access Midstream Tie the Knot”
Bradford County | Greene County (PA) | Industrywide Issues | Lycoming County | Pennsylvania | Public Opinion | Research | Statewide PA | Washington County

Report: PA’s Youth Not Impressed with Marcellus Industry
February 3, 2015February 3, 2015

A little over a week ago The Center for Rural Pennsylvania, a bipartisan, bicameral legislative agency that serves as a resource for rural policy within the Pennsylvania General Assembly, published the third report in a series of studies commissioned on the Marcellus Shale and its impact on the state (see New Report: Marcellus Shale Drilling’s Impact on PA Schools). The Center has just published a fourth report. Titled “Youth Perspectives on Marcellus Shale Gas Development: Community Change and Future Prospects” (full copy embedded below), the new report tackles the topic of youth attitudes toward the industry. In a quick pass, it seems PA’s youth are not all that impressed with the industry and what it has to offer them. They don’t like the traffic and noise and believe in some places shale drilling has detracted from the natural beauty of the countryside and harmed wildlife…
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Dominion Energy | Energy Services | Industrywide Issues | Pipelines

Dominion Buys SC/GA Pipeline Network, Plans for Marcellus Gas?
February 3, 2015February 3, 2015

Dominion Resources, a large energy producer and midstream company operating primarily in the mid-Atlantic and southeast, is behind the the Atlantic Coast Pipeline–a 550-mile, $5 billion natural gas pipeline that will run from West Virginia through Virginia and into North Carolina to deliver 1.5 billion cubic feet per day of Marcellus and Utica Shale gas to VA and NC (see Dominion Asks FERC to Start Environmental Review of SE Pipeline). Yesterday Dominion announced they’ve picked up Carolina Gas Transmission (CGT) for a cool $492.9 million. CGT operates 1,500 miles of FERC-regulated interstate natural gas pipeline in South Carolina and southeastern Georgia. We wonder if Dominion plans to connect the Atlantic Coast Pipeline to CGT and flow Marcellus/Utica shale gas deep into the heart of Dixie…
Read More “Dominion Buys SC/GA Pipeline Network, Plans for Marcellus Gas?”
Industrywide Issues

New Energy Network Coming This Fall to a Computer/TV Near You
February 3, 2015February 3, 2015

The same people who helped launch television networks like MTV, E!, Nickelodeon and VH1 has been hired to help launch a new 24/7 network (cable channel) devoted entirely to…wait for it…energy! According to a press release issued yesterday, “America’s Energy Network (AEN), is the first and only television network exclusively dedicated to the Energy Industry. AEN plans to officially launch in the fall of 2015. The network’s goals will include creating, marketing and distributing original content and programming focused on important and timely issues to positively shape the industry and to build an informative, interactive and creative digital media destination to highlight the industry’s business, lifestyle, values and community.” You can be sure shale will be a big part of the programming for the new AEN. And the biggest shale play in North America is the Marcellus, so one might assume the Marcellus will be a big topic for AEN. How cool is that?!…
Read More “New Energy Network Coming This Fall to a Computer/TV Near You”
Bedford County | Blair County | Cambria County | Chevron | Energy Companies | Pennsylvania

Chevron Selling 17K Marcellus Shale Acres, More Sales Coming
February 2, 2015February 2, 2015

Chevron, according to NGI’s Shale Plays Factbook, is the fourth largest acreage holder in the Marcellus Shale with some 700,000 acres. It appears Chevron is looking to sell off at least some of that acreage. MDN received an email notice (below) from EnergyNet, hired to broker a sale for two of what they say will be an eventual 12 tracks of Marcellus acreage that Chevron owns. The current two are located in Bedford, Blair and Cambria counties in Pennsylvania and represent just over 17,000 acres total. EnergyNet is accepting sealed bids on various tracks, some held by production, some not…
Read More “Chevron Selling 17K Marcellus Shale Acres, More Sales Coming”
Energy Companies | Gastar Exploration

Gastar Finishing 5 Wells, Then Idling Rigs in Marcellus/Utica
February 2, 2015February 2, 2015

Gastar Exploration released an update today to crow about an 87% increase in their proved reserves, and to whisper that they’ve further reduced their 2015 drilling budget–all the way down to $103 million. The news, for the Marcellus, gets worse. Of that $103, they’ll spend a measly $20 million in the Marcellus–$12 million to complete five wells and another $8 million on “acreage costs.” In other words, for all intents and purposes, Gastar has stopped drilling in the Marcellus and the Utica “until economic conditions are more favorable.” Gastar is keeping three drilling rigs active in their midcontinent drilling program–for the time being…
Read More “Gastar Finishing 5 Wells, Then Idling Rigs in Marcellus/Utica”
Blue Racer Midstream | Energy Services | Industrywide Issues | Mahoning County | Ohio | Processing Plants | Utica Shale

Blue Racer Shelves Plans for Mahoning, OH Wet Gas Plant
February 2, 2015February 2, 2015

It was only last August that Blue Racer said they would build a new $70 million wet gas processing plant in Mahoning County, OH (see Blue Racer to Build New Wet Gas Plant in Mahoning County, OH). A Blue Racer Midstream executive backpedaled last Thursday at the Marcellus-Utica Midstream conference and said those plans are now shelved, indefinitiely. Why? That part of the shale play “hasn’t panned out yet” for the company…
Read More “Blue Racer Shelves Plans for Mahoning, OH Wet Gas Plant”
Accidents | Industrywide Issues

List of Accidents Related Marcellus/Utica Shale Drilling 2010-2015
February 2, 2015February 2, 2015

The Intelligencer/Wheeling News-Register ran a couple of articles on accidents in the Marcellus/Utica yesterday. One of the articles chronicled a list of 21 incidents that have happened in the Ohio River Valley over the past 4-5 years, since shale drilling has heated up. That got us to wondering–how big a problem are accidents in the Marcellus/Utica region? We condensed The Intelligencer’s list and trolled through the considerable MDN archives (see our Accidents category) to produce a list of accidents since early 2010. Most of the accidents did not involve injuries–but some of them did. More accidents than we’d like to admit resulted in deaths. We must never forget this is a dangerous industrial activity and we must always be on guard to make it safer. We have nothing to hide and reflecting on what’s happened in the past is a good thing…
Read More “List of Accidents Related Marcellus/Utica Shale Drilling 2010-2015”
Accidents | Industrywide Issues | Pipelines

Marcellus/Utica – More Dangerous than Other Shale Plays?
February 2, 2015February 2, 2015

The recent ATEX Express pipeline explosion/fire in Brooke County, WV has folks asking questions (see ATEX Ethane Pipeline Explodes, Burns in Brooke County, WV). It’s not the first accident in Brooke County. In 2013 Chesapeake Energy had a hydraulic line fail at an active drilling site that ended up torching five tractor-trailers and did $8 million in damage (see Update on Chesapeake Energy Well Fire in Brooke County, WV). Over the past 4 to 5 years, since there’s been active drilling in the Marcellus/Utica, there have been 21 serious accidents/incidents in the Ohio Valley alone (and a number of others outside the Ohio Valley, see our companion article today) related to either drilling or pipelines. By comparison, there have been a handful of accidents and incidents in the North Dakota Bakken–and only one pipeline incident to speak of. Is it a fair comparison to make–safety in the Bakken vs. the Marcellus/Utica?…
Read More “Marcellus/Utica – More Dangerous than Other Shale Plays?”
Energy Companies | Seneca Resources

Seneca Resources Hits 1/2 Bcf/d Production in Previous Quarter
February 2, 2015February 2, 2015

Last week National Fuel Gas Company, parent of Marcellus Shale driller Seneca Resources, reported its quarterly update for the quarter ending Dec 31, 2014. Everyone else calls it fourth quarter 2014, but for National Fuel Gas, it’s their first quarter 2015. What does the latest report show? During the quarter Seneca produced 48.2 billion cubic feet equivalent (Bcfe), an increase of 11.1 Bcfe or 30% over the prior year’s first quarter. Seneca has hit the half billion cubic foot per day club: average daily production during the quarter was 524 million cubic feet equivalent (MMcfe) per day…
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Industrywide Issues | Pennsylvania | Research | Statewide PA | Wastewater

What Does Marcellus Wastewater Disposal Look Like in 10-15 Years?
February 2, 2015February 2, 2015

An interesting and well-written article appears in the Pittsburgh Tribune-Review on the topic of disposal and recycling of frack wastewater. Once upon a time drillers in Pennsylvania would send frack wastewater to the local municipal sewage treatment plant. That ended in 2011 under Dept. of Environmental Protection Secretary Michael Krancer (see PA DEP, Marcellus Shale Coalition Admit Drilling Wastewater Likely Contaminating Drinking Water). Today, some 90% of frack wastewater, which includes both flowback (the stuff that comes back out of the hole for the first couple of weeks following a frack job) and produced water (the naturally occurring water from the depths that continues to come out after the initial frack job), is recycled and used for more fracking. But according to experts quoted, that can only go on for perhaps another 15 years. What happens after that? How do Marcellus/Utica drillers dispose of wastewater when there’s more than they can reuse?…
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About MDN | Calendar

Calendar of Events for Feb 2-15, 2015 [Free]
February 2, 2015February 2, 2015

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 Feb 2-15, 2015 [Free]”
Best of the Rest

Marcellus & Utica Shale Story Links: Mon, Feb 2, 2015
February 2, 2015February 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: Mon, Feb 2, 2015”
Blue Racer Midstream | Economic Impact | Energy Services | Industrywide Issues | Pipelines | Williams

Marcellus-Utica Midstream Conf: $30B of NE Infrastructure Needed
January 30, 2015January 30, 2015

Day two, and the concluding day at the Hart Energy Marcellus-Utica Midstream Conference in Pittsburgh, proved as interesting as the first day (for a day one recap, see Marcellus-Utica Midstream Conf: Marcellus is “Best of the Best”). One of the speakers on day two was Scott Williams, executive VP and chief commercial officer for Blue Racer Midstream, who spoke about his company’s processing plants in the northeast. Blue Racer’s Natrium, WV plant connects to Sunoco Logistics’ Mariner West ethane pipeline, which carts Blue Racer’s ethane to Sarnia, Ontario (Canada) and the Nova Chemicals Corunna ethane cracker. Blue Racer also operates the Berne processing plant in Monroe County, OH. According to Williams, “in excess of $30 billion worth of infrastructure still needs to be built” in the northeast. Wow! That should keep a variety of companies busy for a while. A VP from midstream giant Williams (which recently bought out Access Midstream) agrees…
Read More “Marcellus-Utica Midstream Conf: $30B of NE Infrastructure Needed”