Marcellus Drilling News

Anti-Drilling/Fossil Fuel | Dominion Energy | Energy Services | Industrywide Issues | Pipelines | Statewide WV | West Virginia

So-Called ‘Pipeline Air Force’ to Track Dominion Pipeline in WV
November 26, 2014November 26, 2014

Just when you think you’ve heard it all, along comes another bizarre twist from those who oppose shale drilling. As we’ve reported in a number of stories, Dominion is planning to build a 550-mile, $5 billion natural gas pipeline from West Virginia through Virginia and into North Carolina. It’s called the Atlantic Coast Pipeline project and the Federal Energy Regulatory Commission is now evaluating it (see Dominion Asks FERC to Start Environmental Review of SE Pipeline). Apparently a group of people who oppose the pipeline plan to keep an eye on it as it’s built (they must figure it’s a foregone conclusion that it will get built). They’ve somehow gotten ahold of three airplanes that they will use to spy from the sky as the pipeline gets built through the mountains of West Virginia…
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Energy Companies | Pennsylvania | Range Resources Corp | Washington County

South Strabane Twp Approves Range Plan for 10 Wells in W PA
November 26, 2014November 26, 2014

Last night the South Strabane Township (Washington County, PA) board of supervisors voted to allow Range Resources the right to drill up to 10 wells on an 80-acre site. They did, however, impose some 46 conditions on the drilling–conditions Range said it “could live with.” The drill site is near Kopper Kettle Road and Range likely will not begin active drilling until October 2015. Three supervisors voted in favor, one against and one abstained. The interesting thing, to MDN, is that earlier this month anti-drillers were out in force to oppose drilling under (not even on top of) Mingo Creek County Park, about 12 miles from the Kopper Kettle Road site, spouting silly things like drilling will create a “ring of fire” (see Washington County Votes to Establish “Ring of Fire” at Mingo Park). However, at least night’s meeting, most of the residents who attended support Range’s request…
Read More “South Strabane Twp Approves Range Plan for 10 Wells in W PA”
Energy Services | Industrywide Issues | PennEast Pipeline | Pipelines

New Jersey Resources Update: NJ Loves Natgas & PennEast
November 26, 2014November 26, 2014

A casual news consumer may think that the State of New Jersey is somewhat anti-drilling and takes a dim view of natural gas. After all, the NJ legislature has twice passed a bill that would ban any frack waste from entering the state (see NJ Gov. Christie Vetoes Frack Waste Ban 2nd Time). And opposition to the PennEast Pipeline that runs from PA to NJ has been loud and shrill on the NJ end. What you may not know, however, is that two NJ utilities are partners in the PennEast Pipeline project (see NJ’s Largest Utility Becomes 5th Partner in PennEast Pipeline). New Jersey Resources, one of the two PennEast partners, yesterday issued an update on 2014 with guidance for 2015. The thing that caught our eye? NJR continues to add new natgas customers at a rapid clip–and they’re jazzed on the prospects for the PennEast Pipeline and new sources of cheap, abundant Marcellus Shale gas that will flow to NJ…
Read More “New Jersey Resources Update: NJ Loves Natgas & PennEast”
Commodity Price | Industrywide Issues

Fitch Says Natgas Prices to Remain Low for Next Several Years
November 26, 2014November 26, 2014

What will the price of natural gas do over the next few years? According to analysts at one of the country’s largest credit rating agencies, Fitch Ratings, the price of natgas will “remain subdued over the next several years.” The minds at Fitch offer us their reasoning on where and why gas prices will head, along with the potential impact from low oil prices (yes, there is a connection). Here’s the latest thinking from Fitch, including an interesting discussion of “associated gas” supplies and how/why companies are still making money even with low gas prices…
Read More “Fitch Says Natgas Prices to Remain Low for Next Several Years”
About MDN | MDN Resources

The Top 10 Things MDN is Thankful for in 2014
November 26, 2014December 1, 2014

A very Happy Thanksgiving to you and yours! Marcellus Drilling News will be on holiday both Thursday, Nov. 27 and Friday, Nov. 28. We’ll be back with all of the latest Marcellus and Utica News next Monday, which will be Dec. 1. Can you believe how quickly December snuck up on us?! Meanwhile, for your Thanksgiving enjoyment, below is a list of the top 10 Marcellus/Utica things MDN is thankful for this holiday season…
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Best of the Rest

Marcellus & Utica Shale Story Links: Wed, Nov 26, 2014
November 26, 2014November 26, 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, Nov 26, 2014”
Antero Resources | Energy Companies | Lease & Royalty Payments | Noble Energy | Tyler County | West Virginia

Record High Bid to Drill Under Bambi’s Home in Tyler County, WV
November 25, 2014November 25, 2014

Looks like drilling and fracking adjacent to, and underneath, the Ohio River isn’t the only state-owned asset West Virginia has in mind to raise revenue (see Gastar Wins Lease to Drill Under Ohio River in WV). Last Friday, WV opened bids that will allow drilling under the 518-acre Conaway Run Wildlife Management Area in Tyler County, WV. Yes, those heartless monsters want to allow drilling and fracking under Bambi’s home–can you believe it?! The bids received will make your eyes pop out–some of the highest (perhaps THE highest) amounts offered in a signing bonus to date…
Read More “Record High Bid to Drill Under Bambi’s Home in Tyler County, WV”
Energy Services | Industrywide Issues | Kinder Morgan | Pipelines | Regulation | Tennessee Gas Pipeline

Kinder Morgan Changes Route for Pipeline from MA to NH
November 25, 2014November 25, 2014

Kinder Morgan has, for some time, been locked in a battle with far-left anti-fossil fuelers in Massachusetts who oppose KM’s plan to extend the Tennessee Gas Pipeline across the width of the state in an attempt to deliver cheap, abundant, clean-burning Marcellus Shale natural gas to New England. Those same anti-fossil fuelers use fossil fuels throughout the day every day of their lives, but fail to see the hypocrisy in their twisted position. Pressure against the pipeline, called Northeast Energy Direct (or NED) is mounting as both MA U.S. Senators–both are Democrat–oppose it (see Both Mass. Senators Oppose TGP Northeast Energy Direct Pipeline). Two weeks ago KM proposed an alternate route (see map below). The alternate route, now said to be the preferred route, will shave off something like half of the distance the pipeline stretches across MA and instead chart a course northward–through southern New Hampshire–following the route of an existing power line. The cool thing? NH wants it…
Read More “Kinder Morgan Changes Route for Pipeline from MA to NH”
Energy Services | Industrywide Issues | Kinder Morgan | Pipelines | Tennessee Gas Pipeline

KM Takes on Minority Partner in Northeast Energy Direct Pipeline
November 25, 2014November 25, 2014

More Tennessee Gas Pipeline – Northeast Energy Direct (NED) news today. Aside from today’s companion story today that Kinder Morgan (KM) is seriously considering a route change for the pipeline–away from Massachusetts and into New Hampshire–a second bit of important news. KM has cut a deal with Canadian-based utility company Algonquin Power & Utilities Corp. to invest in the NED project. KM is selling off up to a 10% ownership in the NED project to Algonquin in return for an investment of up to $400 million…
Read More “KM Takes on Minority Partner in Northeast Energy Direct Pipeline”
Columbia Pipeline Group | Columbiana County | Energy Companies | Energy Services | Hilcorp Energy | NiSource | Ohio | Utica Shale

Hilcorp Begins Drilling the Brinker Field in Columbiana County, OH
November 25, 2014November 25, 2014

Funny how old stories become new again. Back in September 2012 MDN first told you about the Brinker Storage Field, a 35,000-acre area in Columbiana County, OH used by Columbia Gas to store natural gas supplies in the Berea Sandstone formation. They’ve been storing gas in it for more than 50 years. The problem that we highlighted back in 2012 is that landowners, who signed leases to allow that storage, were going to get shafted out of royalties for leases Columbia had signed with Hilcorp to drill Utica Shale wells under the Brinker area (see Columbia Gas & Hilcorp Meet with Landowners in Brinker Field). A few months after a meeting with Columbia and Hilcorp reps, many landowners signed revised leases that cut them in on the action–with a 15% royalty (see Some Brinker Field (OH) Leases Revised, Others in Lawsuit). However, some landowners sued. It appears they lost since Hilcorp has filed for permits to begin active drilling in the Brinker. The Ohio Dept. of Natural Resources (ODNR) has already approved 6 of 25 permit applications from Hilcorp, and we expect the others will also be approved…
Read More “Hilcorp Begins Drilling the Brinker Field in Columbiana County, OH”
Hydraulic Fracturing | Industrywide Issues | Pipelines | Processing Plants | Regulation

EPA Issues New Rules for O&G Industry on GHG Emissions Reporting
November 25, 2014November 25, 2014

The Federal Environmental Protection continues to regulate things it has not business regulating–not that it makes a hill of beans worth of difference that we point it out. Nobody will challenge them on their out-of-control behavior, so we all just pretend it’s OK and go along. The latest aggressive action taken by the EPA is to publish a rule change that will go into effect in 60 days. This new rule change is in how so-called greenhouse gas emissions are reported by the oil and gas industry. Both midstreamers and upstreamers are affected, so pay attention or prepare to be fined by the EPA…
Read More “EPA Issues New Rules for O&G Industry on GHG Emissions Reporting”
Coterra Energy (Cabot O&G) | Energy Companies | Pennsylvania | Susquehanna County

Cabot O&G Presentation: Scaling Back 1 Rig in Marcellus in 2015
November 25, 2014November 25, 2014

Cabot Oil & Gas recently participated in the Merrill Lynch 2014 Energy Conference in Miami, Florida. Hey, somebody has to suffer by attending these things, right?! No, weren’t there (wish we were). But we do have a copy of their PowerPoint slide presentation from the event, complete with updates on their Marcellus program. Of note and interest: Due to low gas prices and lack of pipeline infrastructure, Cabot is scaling back just a bit in 2015–moving from 6 drilling rigs to 5 rigs next year in the Marcellus. But that certainly doesn’t mean the monster production from Cabot will let up. The company’s production continues to climb year after year–exponentially…
Read More “Cabot O&G Presentation: Scaling Back 1 Rig in Marcellus in 2015”
Industrywide Issues | Marshall County | Pennsylvania | Sand/Proppant | West Virginia | Wyoming County (PA)

WV Sand Company & Community Work Together to Solve Problem
November 25, 2014November 25, 2014

Ahhh, what a breath of fresh frac sand-free air. A month ago MDN told you about Hi-Crush Partners’ desire to build a frac sand transfer station in Tunkhannock (Wyoming County), PA–a plan that’s meeting resistance from the local community (see NEPA Town Residents Resist Frack Sand Transfer Station). Hi-Crush is now in court with the county planning commission. Meanwhile, in Marshall County, WV, a frac sand facility built by Unimin Sand Co. resulted in (yes) sand particles blowing into the nearby community. Did the community rise up and demand the facility be closed? Did the sand company push back and sue? Nope. They worked together. Unimin is building six new storage silos to contain the sand and the community appreciates the high-paying jobs provided by the company. Note to Wyoming County Planning Commission: Have a talk with the people in Benwood, WV to see how adults react to these issues when they occur…
Read More “WV Sand Company & Community Work Together to Solve Problem”
Energy Services | Kinder Morgan

Shareholders Approve Kinder Morgan Plan to Merge 4 into 1
November 25, 2014November 25, 2014

We’re not quite sure what all of the hullabaloo is about, but last Thursday the various boards and shareholders in four different Kinder Morgan companies voted to merge the four into one. That is, Kinder Morgan’s subsidiaries will, on paper, go from four entities to one entity. Kinder Morgan is buying out itself, in essence. Kinder Morgan is the country’s largest midstream/pipeline company and it was certainly news a few months ago when Kinder CEO Richard Kinder–the man who pioneered the use of the master limited partnership (MLP)–announced he was shedding the MLP and would merge his empire into one entity. He now has the blessing of the shareholders to do just that–and when done, the $44 billion deal will apparently be the biggest thing since sliced bread…
Read More “Shareholders Approve Kinder Morgan Plan to Merge 4 into 1”
Broome County | Crestwood Midstream | Energy Services | Industrywide Issues | New York | NGLs | Schuyler County

Crestwood Execs on Radio to Promote Propane Storage @ Seneca Lake
November 25, 2014November 26, 2014

New York State is stuck in reverse. We can’t get shale drilling going. And shrill anti-fossil fuelers have gone so far as to illegally block the entrance to the future site of an underground storage facility for liquefied petroleum gas (propane) because they believe converting the depleted salt cavern into storing natural gas will lead to fracking in NY (see 10 Antis Arrested for Blocking Crestwood Facility at Seneca Lake). It’s so backward it’s hard to find words. However, there is hope. The Federal Energy Regulatory Commission has now blessed the Crestwood project, and the NY State Dept. of Environmental Conservation, which has delayed approving the project since 2009, has finally issued a draft permit and scheduled a hearing next February that will (hopefully) lead to a permanent permit to allow the facility. Which is why anti-drillers have been nuttier than usual lately. The Joint Landowners Coalition of New York (JLCNY) is hosting a radio program on the Sunday after Thanksgiving to air the real story of this facility and what it will mean for all New Yorkers…
Read More “Crestwood Execs on Radio to Promote Propane Storage @ Seneca Lake”
Pennsylvania | Statewide PA | Statewide WV | West Virginia

Ben Franklin Shale Gas Ctr Announces $100K Contest for Innovators
November 25, 2014November 25, 2014

This is our annual “calling all researchers, entrepreneurs, or small businesses located in PA and WV who have innovative products or services for the Marcellus Shale industry.” If that fits you, you should consider entering the Fourth Annual Shale Gas Innovation Contest that will award $100,000 in prizes ($25K each) to four worthy winners. It may be just the shot you need to launch your product or service to success. The deadline to enter is Feb. 1, 2015. Here’s the announcement from the Ben Franklin Shale Gas Innovation and Commercialization Center…
Read More “Ben Franklin Shale Gas Ctr Announces $100K Contest for Innovators”