Marcellus Drilling News

Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Maryland | New York | Regulation | Statewide MD | Statewide NY

Antis to Take Frack Ban Campaigns National with NY “Success”
December 18, 2014December 18, 2014

Never ones to let a good disaster go to waste, the odious nutters at Food & Water Watch, a rabidly leftist, anti-drilling organization, are attempting to use the ill-fated decision in New York to ban fracking to try and counter Maryland’s recent decision to allow fracking. You see, Maryland government organizations evaluated fracking just like New York government organizations did–but Maryland’s officials came to a different conclusion. They concluded fracking CAN be done safely. Which doesn’t sit well with the nutters at FWW. So they’ve jumped on the NY decision and are trying to spin it like crazy to pressure Maryland into rethinking its decision to allow fracking…
Read More “Antis to Take Frack Ban Campaigns National with NY “Success””
Economic Impact | Hydraulic Fracturing | Industrywide Issues | Jobs | Research

CBO Report: Enormous Positive Impacts of US Shale
December 18, 2014December 18, 2014

While Andrew Cuomo and his buddies were busy banning fracking in New York, the Congressional Budget Office (certainly no bastion of conservatism) issued a report on fracking. The new report, titled “The Economic and Budgetary Effects of Producing Oil and Natural Gas From Shale” (full copy embedded below) says we now get 30% of our oil and 40% of our natural gas from home-grown American shale. The report says without safe, clean, fracked American shale, our natural gas prices would be 70% higher than they are. Do you like those low gasoline prices we’ve seen lately? That’s because of American-produced oil from shale deposits. The enormous amount of supply from right here at home is flooding the market and causing prices to drop like a rock. If Cuomo & co had their way, all fracking across the country would stop tomorrow. Dangerously stupid is about the only thing we can think of to say to the strange attitude being exhibited by New York’s so-called leaders. Here’s a high level overview of the CBO study, followed by a full copy of the study…
Read More “CBO Report: Enormous Positive Impacts of US Shale”
American Energy Partners | Energy Companies | HG Energy | Ohio | Statewide OH | Utica Shale

McClendon Deal Last June was HG Energy’s OH Utica Acreage/Wells
December 18, 2014December 18, 2014

Columbus Business First is reporting that during this past summer’s wheeling and dealing by Aubrey McClendon and his American Energy Partners (see McClendon Buys 48K WV Marcellus Acres, 27K More OH Utica Acres), McClendon picked up HG Energy’s Ohio Utica Shale acreage–all 27,000 acres–along with HG’s already-drilled Utica Shale wells (in the June announcement HG was simply referred to as “an unnamed private company”). HG Energy has now fully exited the Utica Shale. Oh! Two of the HG wells purchased by McClendon as part of that deal were in the top 10 most productive wells in the state for 3Q14. Yet another smart move by Aubrey…
Read More “McClendon Deal Last June was HG Energy’s OH Utica Acreage/Wells”
Energy Services | EnLink Midstream | Industrywide Issues | NGLs | Ohio | Pipelines | Statewide OH

EnLink Launches 1 Month Open Season for ORV Condensate Pipeline
December 18, 2014December 18, 2014

In August, MDN told you about EnLink Midstream’s newly planned condensate pipeline. The Ohio River Valley (ORV) Pipeline, as it’s called, will connect to EnLink’s existing 200-mile pipeline in eastern Ohio and West Virginia, providing drillers in the region access to markets through EnLink’s Bells Run barge facility and Black Run rail terminal (see EnLink Midstream Announces New Condensate Pipeline in ORV). The OVR Pipeline, expected to be completed in the second half of 2015, will have an initial capacity of approximately 50,000 barrels per day (bpd). Yesterday EnLink announced a binding open season for the pipeline–the time when drillers and other customers can sign up to reserve capacity on the new pipeline…
Read More “EnLink Launches 1 Month Open Season for ORV Condensate Pipeline”
Best of the Rest

Marcellus & Utica Shale Story Links: Thu, Dec 18, 2014
December 18, 2014December 18, 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: Thu, Dec 18, 2014”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

NY Gov. Cuomo Kills Prospects for Fracking
December 17, 2014

This is a very sad day for all New Yorkers. Gov. Andrew Cuomo has decided to not proceed with high volume hydraulic fracturing (fracking) in the state. MDN editor Jim Willis has just finished listening to a live announcement in which the State Dept. of Health Commissioner Howard Zucker embarrassed himself by admitting he relied on shoddy rumors and flawed studies–and even lack of studies–to draw the conclusion that fracking should not be allowed. Zucker repeatedly said “there’s not enough research” to convince him that fracking is safe for NY’s human population.

NY’s anti-drilling Commissioner of the Dept. of Environmental Conservation, Joe Martens, then said, essentially, “yep, good enough for me, no fracking” and that was that. Cuomo, acting like the buffoon that he is, then said he has no further role to play in the debate and it’s case closed. How sad and how tragic. The only recourse left is to vote Cuomo out of office, which won’t happen now for another four years. We who live in New York have just been royally screwed by our governor. No wonder this state is dead last in jobs, economy, and every other important measure. No wonder people are leaving the state in droves. We predict it’s a trend that will only accelerate with this decision.

More on NY’s decision tomorrow. This is just a quick note to alert you.
Energy Companies | EXCO Resources | Halcon Resources | Penn Virginia Corporation

4 Marcellus Companies Debut on Debtwire’s Distressed Watchlist
December 17, 2014December 17, 2014

Debtwire is an interesting service. They keep an eye on publicly traded companies to give subscribers to their service a heads-up on which companies are potentially carrying too much debt–companies that may, due to changing economic circumstances, have a hard time paying back that debt. Think of Debtwire as an early warning system to let you know BEFORE Moodys or Fitch Ratings downgrades a company’s credit rating. Later this month Debtwire will issue a new Distressed Watchlist with 176 companies on it. Some 55 new companies will be added to the list from the energy industry alone. With the addition of the 55 new companies, the Distressed Watchlist will have 70 (of 176) companies from the energy industry–making 40% of the list top heavy with energy companies. We have what we believe is an MDN exclusive–Debtwire has sent us the top 20 energy-related companies on the list. Of the top 20, four of them have operations in the Marcellus/Utica region…
Read More “4 Marcellus Companies Debut on Debtwire’s Distressed Watchlist”
Pennsylvania | Statewide PA

PA Gov-Elect Wolf Transition Team Includes DRBC’s Carol Collier
December 17, 2014December 17, 2014

Pennsylvania Gov.-elect Tom Wolf has selected the members of his takover team (sometimes referred to as a transition team). Who has he selected when it comes to taking over the Dept. of Environmental Protection (DEP) and the Dept. of Conservation and Natural Resources (DCNR)? Those are the two organizations most closely involved with the issue of shale gas drilling in the Keystone State. MDN has reviewed the list of takeover team members for both the DEP and DCNR (see it below). We’ve identified those we consider either pro-drilling (highlighted in green) or anti-drilling (highlighted in red). At a glance it appears to be pretty evenly split. However, the big red flag for us is the appointment of Carol Collier, former director of the Delaware River Basin Commission, to the DEP takeover team. Interesting thing is, Wolf’s website doesn’t mention Collier’s most recent position at the DRBC–perhaps hoping no one would notice?…
Read More “PA Gov-Elect Wolf Transition Team Includes DRBC’s Carol Collier”
Dominion Energy | Energy Services | Industrywide Issues | Marshall County | Pipelines | Regulation | Statewide WV | West Virginia

Dominion Fined $55K for Run-off in WV Creeks
December 17, 2014December 17, 2014

Dominion Transmission has agreed to pay $55,470 in fines for violating the West Virginia Water Pollution Control Act. The fines are the result of WV Dept. of Environmental Protection (DEP) investigations that started in November of 2012. The DEP investigated “slips” or slopes restored after Dominion dug trenches to lay pipeline. The slopes were not restored properly and sediment and erosion ended up in area creeks. Dominion is required to fix the creeks and pay the fine…
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Energy Companies | EXCO Resources | Pennsylvania | Statewide PA

EXCO Resources Suspends Dividend Payments to Shareholders
December 17, 2014December 17, 2014

It’s never a good thing when a publicly traded company suspends dividend payments. EXCO Resources, an oil and natural gas driller with operations in Texas, Louisiana and a small drilling operation in the Pennsylvania Marcellus, announced on Monday that because the price of oil has gone so low, they’ve suspended dividend payments to shareholders. One more case of how low oil prices can and does affect drilling for natural gas in the northeast…
Read More “EXCO Resources Suspends Dividend Payments to Shareholders”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

NY Anti-Drillers Ramp Up the Rhetoric, Demand Cuomo Delay Again
December 17, 2014December 17, 2014

As New York Gov. Andrew Cuomo nears a decision to allow fracking (what other decision can there be?), anti-drillers are once again becoming more shrill. Especially anti-drillers who also hold public office–they’re the worst of the lot–total nutjobs who want to deny property rights to the citizens they supposedly represent. Even though we now have over 200,000 horizontally fracked shale wells, many of which are right across the border in Pennsylvania, and a multitude of scientific studies, the call goes forth again (from NY anti-drillers) that Cuomo should delay a decision. In other words–no drilling is acceptable to the unreasonable anti-driller. Not now, not ever. So the antis are ramping up the rhetoric ahead of a decision they fear will go against them…
Read More “NY Anti-Drillers Ramp Up the Rhetoric, Demand Cuomo Delay Again”
Chesapeake Energy | Energy Companies

Chesapeake Gets $4B Line of Credit Refinanced Extra 5 Yrs
December 17, 2014December 17, 2014

With numbers that are really too large to get your head around, Chesapeake Energy announced yesterday that their creditors have agreed to give them another five years to pay back $4 billion–and the deal will allow them to borrow up to another $1 billion along the way! To be fair, it is an “unsecured revolving credit facility.” That is, a line a credit. Write a check and if you haven’t borrowed up to the maximum, the check will clear. The announcement does not say how much of that $4 billion, originally due in December 2015, has been used and how much is left to be used. Here’s what Chessy did say yesterday:
Read More “Chesapeake Gets $4B Line of Credit Refinanced Extra 5 Yrs”
Industrywide Issues | Pennsylvania | Statewide PA | Taxation

PA Sen Brewster’s “Excrement for Education” Severance Tax Bill
December 17, 2014December 17, 2014

Pennsylvania State Sen. Jim Brewster (Democrat from Allegheny & Westomoreland counties) wants to be known as the politician that killed Marcellus drilling in the Keystone State. That’s the only thing we can conclude from his efforts to introduce (yet again) a bill that would tax Marcellus drilling into idleness. Brewster’s plan calls for KEEPING the impact fee and ADDING a severance tax to it–but deducting impact fee payments from the severance tax. Complicated cockamamie? Yeah. Brewster proudly calls his bill/plan “Extraction for Education” because it will give all of the severance portion raised (5% or whatever portion it works out after impact fees) to teachers’ unions. We call it “Excrement for Education”…
Read More “PA Sen Brewster’s “Excrement for Education” Severance Tax Bill”
Industrywide Issues | Pennsylvania | Pipelines | Statewide PA | Taxation

PA Senators to Re-Introduce Impact Fee Bill for Pipelines
December 17, 2014December 17, 2014

Two Philadelphia-area state senators, John Rafferty (Republican from Collegeville), and Andrew Dinniman (Democcrat from West Chester), will introduce legislation in January that would extend the Act 13 impact fee to include newly built gathering and transmission pipelines in the state. The new fee/tax would be based on the amount of acreage used by the pipeline, which includes the entire right-of-way on either side of the pipeline. According to the senators, most of the revenue generated would stay with the local counties and towns where the pipeline is located, in keeping with the intent of an impact fee. The industry is pushing back, saying pipelines have a minimal impact…
Read More “PA Senators to Re-Introduce Impact Fee Bill for Pipelines”
Best of the Rest

Marcellus & Utica Shale Story Links: Wed, Dec 17, 2014
December 17, 2014December 17, 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: Wed, Dec 17, 2014”
Energy Companies | Pennsylvania | Range Resources Corp | Utica Shale | Washington County

Range Resources Drills Highest-Ever Initial Producing Utica Well
December 16, 2014December 16, 2014

Yesterday Range Resources released an announcement with two big pieces of news. The first (and lesser) news is this: Range is trimming its 2015 exploration and production budget by 18% compared to what they spent this year. The 2015 capital expenditure budget is now set at $1.3 billion. However, the company says production will continue to increase, even with less spending on drilling. The second and more important news: Range has drilled a Utica Shale well that has dethroned Magnum Hunter’s Utica well (see Magnum Hunter Takes the Prize: Top Producing Utica Well) as being the most initially productive horizontal shale well ever–in the Marcellus, Utica or any other shale play. Range says their Utica well is producing an initial production rate of a mind-blowing 59 million cubic feet per day (Mmcf/d). In the course of a single month, that one well produces enough gas to heat more than 25,000 U.S. homes for an entire winter. Oh…and just where is Range’s new gargantuan Utica well located? In Washington County, PA…
Read More “Range Resources Drills Highest-Ever Initial Producing Utica Well”