Marcellus Drilling News

Anti-Drilling/Fossil Fuel | Dominion Energy | Energy Services | Industrywide Issues | Madison County | New York | Pipelines

The 2 Types of Opponents to a NY Compressor Plant
December 12, 2014December 12, 2014

In June 2014 Dominion filed an application with the Federal Energy Regulatory Commission (FERC) to, among other things, build two new compressor stations in upstate New York: one in Chemung County, the other in Madison County–both along an existing pipeline. It’s part of Dominion’s New Market project (see Dominion’s NY Compressor Plants to Move More Marcellus Gas). Some residents in Madison County are opposed to the new 10,880 horsepower compressor that would be built near some homes. More than 150 residents spoke out against it at hearings held by FERC this year (public comments closed on Dec. 5). What struck us, in a recent story about opposition to the plant, is the dichotomy that exists among those who oppose it…
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Electrical Generation | Industrywide Issues

Who’s Building Natgas-Fired Electric Plants in the Marcellus?
December 12, 2014December 12, 2014

You might think the companies most bullish on using Marcellus Shale gas to generate electricity would be utility companies–what is called, in the business, an LDC or local distribution company. LDCs love low-cost Marcellus gas to redistribute to their customers and are doing so. Case in point: UGI Central Penn now sources 80% of the natural gas it delivers to customers in northeast and central Pennsylvania from the Marcellus Shale on its doorstep (see UGI Central Penn Natgas Rates Go Down Thanks to the Marcellus). However, it’s not utilities, local–like UGI–or national–like NRG–that are building new electric generating plants that use natural gas. It is, instead, private equity firms–investors–like Panda Power Funds, building two new plants in NEPA (see Plugging in to Panda Power’s Electric Generation Supply Chain). Why is it that private equity funds are building these plants–not only in the Marcellus but also in other regions–and not utility companies? Bloomberg explains…
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CNG/LNG | Energy Services | Exporting | Industrywide Issues | Kinder Morgan | Pipelines | Tennessee Gas Pipeline

More Marcellus Gas Going to Cheniere LNG Export Facility in TX?
December 12, 2014December 12, 2014

Earlier this week Kinder Morgan signed a new 15-year agreement with Cheniere to supply Cheniere’s Sabin Pass LNG export facility near Corpus Christi, Texas. One of the pipelines that will deliver the gas is Kinder’s Tennesses Gas Pipeline. Although the press release doesn’t say so, we believe at least some of the gas that Kinder will provide to Cheniere via the TGP will be Marcellus Shale gas…
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Industrywide Issues | Pennsylvania | Statewide PA | Taxation

PA Accountants Love Marcellus Severance Tax (and Smoking Pot)
December 12, 2014December 12, 2014

Two accountants walk into a bar….Wait! No. That’s a story for another blog site. Reboot: The Pennsylvania Institute of Certified Public Accountants (PICPA) has just released a poll of their members. One of the questions asked: How should PA close the state budget gap? The top three choices from the bean counters: (1) privatize liquor stores (69%); (2) implement a severance tax on shale drilling (67%); and (3) legalize pot smoking (27%). There are 22,000 members of PICPA, so if 22% of them (almost 5,000) want to light up a joint, it looks like more than a few in PA believe like John Hanger, Gov.-elect Wolf’s new Secretary of Planning and Policy. Before Hanger dropped out of the governor’s race, he famously endorsed legalizing pot smoking. Maybe PA will become the new Colorado–full of stoners? But we digress. Does anyone else find it suspicious that the people who would have to file reams of tax forms on a severance tax (generating lots of billable hours) are in favor of such a tax? Can anyone say, conflict of interest?…
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CNG/LNG | Commodity Price | Industrywide Issues

The Connection Between Natgas Development & the Price of Oil
December 12, 2014December 12, 2014

Another story about the relationship between the price of oil and it’s impact on natural gas development–this time a story about the Marcellus. We noticed a brief mention in an article published on The Street (Jimmy Crammers website) that provides an important piece of the puzzle for us–and we thought you would be interested too. The article says the price of LNG (liquefied natural gas) is pegged to the price of oil. Low oil prices, low LNG prices, and that may affect drillers in the Marcellus and elsewhere. Except, according to the article, even though the price of oil is in a free fall, production and drilling of natural gas in shale areas like the Marcellus have not been affected…
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Best of the Rest

Marcellus & Utica Shale Story Links: Fri, Dec 11, 2014
December 12, 2014December 12, 2014

The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading:
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Ohio | Statewide OH | Utica Shale

Latest ODNR Maps Showing Where Utica/Marcellus Wells are Located
December 11, 2014December 10, 2014

A couple of nifty maps to share with you, courtesy of the Ohio Dept. of Natural Resources. The ODNR recently updated their maps showing both Utica Shale activity (permitted, drilled, producing, etc.), and showing the same for Marcellus wells in Ohio. Yes! There are a few Marcellus wells in Ohio…
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Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | New York | Statewide NY

NY Anti-Drillers Launch Yet Another PR Effort: Not One Well
December 11, 2014December 10, 2014

Well-scripted and organized “environmental” groups, including the National Resources Defense Council (NRDC), the odious Food & Water Watch, THE Delaware Riverkeeper, Sierra Clubbers and other assorted nutjobs have banded together and, using the deep pockets of the Park Foundation and other financiers of tyranny, have launched the “Not One Well” advertising campaign. The new campaign is designed to browbeat, cajole and otherwise threaten one person, NY Gov. Andrew Cuomo, into not allowing a single shale well to be drilled in NY state. Using the same old scare tactics and completely debunked junk science, they’re turning up the heat as the deadline draws near (Dec. 31st) by which Cuomo hinted that he would make a decision on fracking in the Empire State. Of course he won’t make a decision by then, so we’re not sure why they have their knickers in a twist. But hey, let them blow another million or two on wasted advertising. Who cares?…
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Eclipse Resources | Energy Companies | Guernsey County | Ohio | Utica Shale

Eclipse Resources Brings 6 Utica Wells Online, 5 More by Dec 31
December 11, 2014December 10, 2014

Last week Eclipse Resources provided an operational update to say they’ve now brought six new Utica Shale wells online over the past two months. The company’s statement doesn’t say where those wells are located, but we have some theories on that. The update also says they plan to bring another five Utica wells online by the end of this year…
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Citrus | Energy Companies | Warren Resources

CEO of Warren Resources Quits, Replaced by Citrus Energy CEO
December 11, 2014December 10, 2014

Warren Resources is an independent exploration and production company headquartered in New York City. Warren has ongoing drilling programs in California, Wyoming, and in the Pennsylvania Marcellus Shale. Or rather, they own leases on 6,982 acres in the Marcellus. We don’t believe they’ve drilled a single well in the Marcellus to date–but perhaps that’s about to change? Last Friday the company announced the sudden departure of its CEO and Chairman of the Board, Philip Epstein. In his place as interim CEO will be board member Lance Peterson, and as interim Chairman of the Board, Dominick D’Alleva. Lance Peterson is the founder and current CEO of Citrus Energy–so it appears that he’ll balance running two companies at the same time. Citrus *is* an active driller in the PA Marcellus…
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Industrywide Issues | Pennsylvania | Statewide PA | Taxation

PA Gov-Elect Wolf Appoints John Hanger Secretary of High Taxes
December 11, 2014December 10, 2014

Pennsylvania Gov.-elect Tom Wolf continues to get the Ed Rendell band back together again–the same bunch that ran PA into the financial ditch under Rendell. First he appointed Katie McGinty, former Secretary of the Dept. of Environmental Protection (DEP) under Rendell, as his chief of staff. Now Wolf has appointed another Rendell Sec. of DEP, John Hanger, as his Secretary of Planning and Policy. Must be Wolf has a thing for DEP Secretaries. You may recall Hanger ran against Wolf (and against McGinty) in the Democrat primary for governor this year, but dropped out in March (see Pass One Last Joint for John Hanger). Hanger can’t wait to cook up high severance taxes on drillers. Why is it Democrats always salivate when they think about taking other people’s money?…
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Industrywide Issues | Ohio | Regulation | Statewide OH

OH House Bill 490 in Trouble – Frack Chemical Data for 1st Responders
December 11, 2014December 10, 2014

This is the ongoing saga of Ohio House Bill 490, a Hail Mary comprehensive omnibus bill that would tackle a number of issues, including fixing reporting rules that restore access to a database of chemicals used at various drilling sites to first responders (their access was taken away by anti-drillers last year, see OH Antis Force Change in Chemical Reporting, Everyone Less Safe). The ODNR wants new language in HB 490 to fix the problem, but the language passed, once passed through politicians’ hands, turned from gold into lead (see OH Senate Asked to Fix Language in Frack Chemical Reporting Bill). Although the Senate is trying to plug all of the holes in 490, it looks like the good ship 490 is about to sink…
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Industrywide Issues | Pennsylvania | Regulation | Statewide PA

SRBC Hums Along – Approves 17 New Water Withdrawal Projects
December 11, 2014December 10, 2014

You just have to admire the Susquehanna River Basin Commission. They meet, they get things done. Decisions are made, regulations updated, projects approved (or not). And a great many of the things they deal with are related to Marcellus Shale drilling in Pennsylvania. Contrast that to the Delaware River Basin Commission where there is no Marcellus Shale drilling–where the DRBC has an ongoing dysfunction when it comes to shale drilling. At any rate, last week the SRBC met again and a whole list of items got completed, including 17 applications for water withdrawals…
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Industrywide Issues | NGLs | Regulation

ND Regulators Pass Rule Making Bakken Crude by Rail Safer
December 11, 2014December 10, 2014

For some time MDN has written and highlighted articles about Bakken Shale crude oil that gets to market largely on railroads. The short version of the story is this: Bakken crude contains a lot of NGLs (natural gas liquids), like ethane, butane, propane. The NGLs make the crude more ignitable and flammable if there’s an accident. And there’s always an accident–at some point in some place. A number of Bakken crude trains run through New York State and of course NY’s anti-drillers object (what don’t they object too?). We’ve heard lovely metaphors and analogies like “bombs on rails” and “death trains.” On Tuesday, the North Dakota Industrial Commission (NDIC) met and passed a controversial measure to fix the problem. Starting April 1st, oil companies will have to strip out most of the NGLs before the oil is loaded onto railcars. Of course that won’t appease anti-drillers, but it will make communities through which the trains pass safer than they are now…
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Air Quality | Industrywide Issues | Regulation

Clock Ticking for Comment on EPA Rule on Greenhouse Gas Reporting
December 11, 2014December 10, 2014

Two weeks ago MDN gave E&P and midstream companies a heads-up that another onerous new “rule” (i.e. law) is coming from the out-of-control Obama Environmental Protection Agency (EPA) that requires energy companies to file greenhouse gas emissions reports for just about everything–wellpads, pipelines, compressor stations (see EPA Issues New Rules for O&G Industry on GHG Emissions Reporting). A whole new level of reporting is coming at you. On Tuesday the EPA published their proposed rule change in the Federal Register (copy below)…
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Industrywide Issues | Ohio | Research | Statewide OH | Utica Shale

Benesch Shale Report 3Q14: Upstream, Midstream & Downstream
December 11, 2014December 10, 2014

Each quarter the Ohio law firm of Benesch Friedlander Coplan & Aronoff LLP produces an Ohio shale update. MDN often shares their updates–well worth your time to read. The latest edition, covering Utica Shale activity in the third quarter of 2014, is embedded below. This issue highlights infrastructure announcements, financial results for some of the Utica’s largest drillers, supply chain news and regulatory news. Take time to read this well-crafted summary (will only take you a few minutes)…
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