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Marcellus Drilling News
  • Education | Industrywide Issues | Pennsylvania | Research | Statewide PA

    New Report: Marcellus Shale Drilling’s Impact on PA Schools

    January 28, 2015January 28, 2015

    The Center for Rural Pennsylvania, a bipartisan, bicameral legislative agency that serves as a resource for rural policy within the Pennsylvania General Assembly, has just published the third report in a series of studies commissioned on the Marcellus Shale and its impact on the state. Titled “Marcellus Shale Gas Development and Impacts on Pennsylvania Schools and Education” (full copy embedded below), the report looks at whether or not the rapid development of shale drilling in the state has stressed local schools in areas with the most Marcellus Shale drilling. It was feared that with an influx of workers, and potentially families, local schools would see a spike in enrollment. The report says that hasn’t happened. There was also a concern about dropout rates–perhaps kids leaving school early to work in the gas fields. That hasn’t happened either. In fact, if anything, the Marcellus has contributed more money to the coffers of local schools. No negative impacts, lots of positive impacts from northeast shale drilling…
    Read More “New Report: Marcellus Shale Drilling’s Impact on PA Schools”

  • Anti-Drilling/Fossil Fuel | Guest Post | Industrywide Issues | Pipelines

    Guest Post: The Self Delusion of Anti-Pipeliners in New England

    January 28, 2015January 28, 2015

    Yesterday MDN ran a story from NGI’s Daily Gas Price Index that delves into the motivation behind the intense opposition to pipeline projects in the northeast (see Why Such Intense Opposition to Pipelines in the Northeast?). Rick Groll, a geologist and industrial seismologist living and working in the Boston area, has some of his own observations on the motives of his fellow New Englanders. What makes these anti-pipeliners tick? Rick offers us some insight in this guest post…
    Read More “Guest Post: The Self Delusion of Anti-Pipeliners in New England”

  • Best of the Rest

    Marcellus & Utica Shale Story Links: Wed, Jan 28, 2015

    January 28, 2015January 28, 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: Wed, Jan 28, 2015”

  • Accidents | Brooke County | Energy Services | Energy Transfer Partners | Ethane | Industrywide Issues | Pipelines | West Virginia

    ATEX Ethane Pipeline Explodes, Burns in Brooke County, WV

    January 27, 2015January 27, 2015

    Follansbee pipeline fireYesterday morning a section of the 20-inch ATEX (Appalachia to Texas) ethane pipeline ruptured and caught fire in Follansbee (Brooke County), WV. No one was injured but two families living nearby were evacuated as a precaution. The first calls of an explosion and fire came around 10:40 am yesterday. The cause of the rupture is not yet known…
    Read More “ATEX Ethane Pipeline Explodes, Burns in Brooke County, WV”

  • Energy Companies | Hess | Ohio | Statewide OH | Utica Shale

    Hess Cuts Utica Drilling Budget 42% for 2015

    January 27, 2015January 27, 2015

    Hess Corporation, with some 90,000 leased acres in the Ohio Utica Shale, announced yesterday they are whacking their Utica budget, reducing it by 42% for 2015. Last year Hess spent $500 million in the Utica. This year they plan to spend $290 million and drill 20-25 wells (around $11-$12 million per well). Hess will continue their joint venture with CONSOL Energy in the Ohio Utica. Here’s the announcement from yesterday:
    Read More “Hess Cuts Utica Drilling Budget 42% for 2015”

  • Energy Companies | Equinor/Statoil | Gastar Exploration | Jay-Bee Oil & Gas | Lease & Royalty Payments | Marshall County | Noble Energy | Statewide WV | Triad Hunter | Tyler County | West Virginia | Wetzel County

    More Bids to Drill Under WV State-Owned Land, Incl Ohio River

    January 27, 2015January 27, 2015

    West Virginia keeps up its aggressive push to lease and allow drilling under state-owned land–both under the Ohio River and under other tracts of state-owned land in prime Marcellus/Utica country. Last Friday the state Dept. of Commerce, responsible for overseeing the leasing program, opened its latest round of bids. Some of them are truly eye-popping. You may recall Antero Resources has paid $12,000 per acre (with 20% royalties) to drill under 518 acres of the Conaway Run Wildlife Management Area (see Record High Bid to Drill Under Bambi’s Home in Tyler County, WV). In the bids opened Friday, Jay Bee bid an even higher price to drill under the Jug Wildlife Management Area, also in Tyler County…
    Read More “More Bids to Drill Under WV State-Owned Land, Incl Ohio River”

  • Industrywide Issues | Lease & Royalty Payments | Pennsylvania | Statewide PA | Taxation | Washington County

    The Tax Man Returneth — for PA Landowners with Royalties

    January 27, 2015January 27, 2015

    Landowners who get royalty checks in Pennsylvania beware: the PA tax man may be coming for you. It’s a shame, but landowners who get royalty checks have to employ a bevy of accountants and tax experts in order to file a tax return. Such is life. One of the deductions landowners take from their royalty checks are for production costs. On paper, a landowner may be paid 14% in royalties, but in actuality it works out to be much less. Landowners have to navigate sometimes confusing statements from drillers to put the right numbers in the right boxes. What’s happening now is that the PA Dept. of Revenue is telling some landowners the numbers in the boxes don’t add up–according to their convoluted calculations anyway. And PA wants some of that money back they say should have been paid to them all along. It’s a confusing mess…
    Read More “The Tax Man Returneth — for PA Landowners with Royalties”

  • Industrywide Issues | New York | Regulation | Statewide NY

    Congressman Proposes Bill to Compensate NY’s Jilted Landowners

    January 27, 2015January 27, 2015

    Congressman Tom Reed (Republican, Conservative) from the Southern Tier/Twin Tiers area of New York (Corning region) is “leading the charge” in Washington by proposing new legislation that would require states, like New York, to compensate residents when it causes them harm by action or inaction–like the recent Gov. Andrew Cuomo decision to ban fracking in the state. Under Reed’s proposal, called the “Defense of Property Rights Act,” landowners would be entitled to receive $20,000 or 20% of the value of their land. Below is the press release from Reed’s office, a few extra details we’ve gleaned from news accounts, and our own opinion of this strategy…
    Read More “Congressman Proposes Bill to Compensate NY’s Jilted Landowners”

  • Columbiana County | Ohio | Utica Shale

    Utica Drilling Still Going Strong in Northern Ohio/Columbiana County

    January 27, 2015January 27, 2015

    Although the received wisdom is that natural gas drilling in Ohio has “moved south” to places like Belmont, Harrison, Guernsey, Noble and Monroe counties, the fact remains there is still a strong and stead program of drilling in counties further north–like Carroll and Columbiana. Point in fact: Who’s drilling in Columbiana County, where are they drilling, and how much are they drilling? We have the latest stats that show a still-thriving Utica Shale industry in Columbiana…
    Read More “Utica Drilling Still Going Strong in Northern Ohio/Columbiana County”

  • Anti-Drilling/Fossil Fuel | Industrywide Issues | Pipelines

    Why Such Intense Opposition to Pipelines in the Northeast?

    January 27, 2015January 27, 2015

    An excellent article from the Natural Gas Intelligence’s (NGI) Daily Gas Price Index publication, sister to the excellent Shale Daily, delves into the reasons behind the widespread and ongoing opposition to pipeline projects in the northeast. Pipelines like PennEast from Wilkes-Barre, PA to Trenton, NJ, and the expansion of the mighty Tennessee Gas Pipeline across Massachusetts and New Hampshire, have raised the ire of anti-drillers. The Daily Gas Price Index article delves into the reasons why folks in the northeast are resisting new pipeline projects…
    Read More “Why Such Intense Opposition to Pipelines in the Northeast?”

  • Chesapeake Energy | Energy Companies | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

    Guest Post: Bradford Co Landowner Asks Gov. Wolf to Support HB 1684

    January 27, 2015January 27, 2015

    MDN has written plenty about Pennsylvania’s HB 1684–the Guaranteed Minimum Royalty Act (see these MDN articles). In essence, some companies (cough *Chesapeake Energy* cough) have gotten creative with deducting post-production costs from royalty checks. According to the PA Guaranteed Minimum Royalty Act of 1979, royalty owners (landowners) must receive no less than 1/8, or 12.5%, by law. But when Chessy and others start deducting this and that, never spelled out in the original lease agreement, landowners are getting the shaft–way lower than 12.5%. In some cases they get royalty checks for a few dollars! Bradford County landowner John Williams is concerned, both about HB 1684 and newly elected Gov. Tom Wolf’s stand on that bill, and about Wolf’s proposed 5% severance tax. Will the severance tax be the next deduction gas companies take, further reducing royalty checks? Is the severance tax Tom Wolf proposes a tax that will be paid, in essence, by landowners? We thank John for his guest post…
    Read More “Guest Post: Bradford Co Landowner Asks Gov. Wolf to Support HB 1684”

  • Best of the Rest

    Marcellus & Utica Shale Story Links: Tue, Jan 27, 2015

    January 27, 2015January 27, 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: Tue, Jan 27, 2015”

  • Blue Ridge Mtn Res/Magnum Hunter | Energy Companies

    Magnum Hunter CEO: No New Marcellus/Utica Drilling in 2015

    January 26, 2015January 26, 2015

    no drillingMagnum Hunter Resources (MHR), a small but growing driller in the Marcellus/Utica, gave one day’s notice and then convened a phone call with investors last Friday to declare they’re not spending a dime on new drilling in 2015–until the prices charged by oilfield services companies (the companies that do the drilling and fracking) come down–a lot. MHR CEO Gary Evans said he’s looking for a 40% discount compared to what the company paid in 2014 for the same services–and until they get it, the drill rigs for MHR will be idled. But have no fear, production for the company (meaning revenue) will continue to grow each quarter in 2015 because of wells already drilled and shut-in, waiting to be connected to pipelines…
    Read More “Magnum Hunter CEO: No New Marcellus/Utica Drilling in 2015”

  • Energy Services | Energy Transfer Partners | Industrywide Issues | M&A | Regency Energy Partners

    Energy Transfer Partners Buys Regency Energy for $25B

    January 26, 2015January 26, 2015

    Big NewsBig news in the midstream (pipelines and processing plants) world. Today, Energy Transfer Partners (ETP) announced they are merging with and buying Regency Energy Partners in a deal with a total value of $24.8 billion–$18 billion in stock and cash, and $6.8 billion in assumed Regency debts. You may recognize both names, as both companies are active in the Marcellus and Utica Shale…
    Read More “Energy Transfer Partners Buys Regency Energy for $25B”

  • Commodity Price | Industrywide Issues | Pennsylvania | Statewide PA

    MSC & PIOGA: Marcellus Drilling is Scaling Back “Significantly”

    January 26, 2015January 26, 2015

    What’s the prognosis for new drilling activity in the Marcellus Shale? Two industry leaders gave a sobering assessment to the Philadelphia Inquirer. Dave Spigelmyer, president of the Marcellus Shale Coalition (MSC) and Lou D’Amico, president of the Pennsylvania Independent Oil and Gas Association (PIOGA) spoke frankly about where drilling is scaling back (more so in the wet gas areas than the dry gas areas, but dry gas still affected too), and when the outlook is likely to improve (not any time soon)…
    Read More “MSC & PIOGA: Marcellus Drilling is Scaling Back “Significantly””

  • Industrywide Issues | Research | Statewide WV | West Virginia

    MDN Exclusive: WV Horizontal Well Production Report w/Well Names

    January 26, 2015January 26, 2015

    The West Virginia Dept. of Environmental Protection (WVDEP) requires annual reporting of production data–woefully out of step with both Ohio (quarterly reports) and Pennsylvania (monthly reports starting in March 2015). The WVDEP “requires” drillers to file reports by March of each year–but many wells did not list production data for 2013 until “recently”–in September 2014. What does the data show? Production varies widely depending on the geography. Below are some examples, along with the complete production report from 2013 for horizontal wells in WV, specially produced to show the well name (available only from MDN)…
    Read More “MDN Exclusive: WV Horizontal Well Production Report w/Well Names”

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