Marcellus Drilling News

Lease & Royalty Payments | Ohio | Utica Shale | Washington County (OH)

Marietta’s City-Owned Land for Lease Tied Up (Again) by City Council
October 27, 2014October 27, 2014

For (quite) a while now the city of Marietta, OH has tried to get leases of city-owned property for drilling under (not on) to extract Utica Shale gas. The first time around they tried, they delayed and it cost them (see Delay in Leasing City-Owned Land Costs Marietta, OH Big $). They decided to try again, with five different parcels (see Marietta Tries 2nd Time to Lease City Land for Utica Drilling). MNW Energy, a leasing company for Protege Energy, originally offered to lease Gunlock Park and Goose Run Road (two of the five parcels) for $4,750 per acre signing bonus and 17.5% royalties. Looks like that deal is back on the table and the city is reviewing it–hopefully in a more timely manner this time around. The problem is, it appears city council is once again frittering around…
Read More “Marietta’s City-Owned Land for Lease Tied Up (Again) by City Council”
Allegheny County | Anti-Drilling/Fossil Fuel | Baker Hughes | Energy Services | Industrywide Issues | Pennsylvania

Anti-Drillers Protest Steelers Game Over Breast Cancer Donation
October 27, 2014October 27, 2014

How small and mean, and frankly stupid, can anti-drillers get? Pretty small and mean and stupid. On Sunday, a handful of anti-drillers protested outside of Heinz Field where the Pittsburgh Steelers were set to play the Indianapolis Colts–there to protest oilfield services company Baker Hughes handing over a check for $100,000 at half-time to the Susan G. Komen foundation for breast cancer research (the world’s foremost such organization). We wrote about these nutters previously (see Liberal Group Calls Baker Hughes Breast Cancer Effort “Pink Sh*t”). There is no connection between shale drilling and breast cancer, but let’s not let facts get in the way of a good protest, right?…
Read More “Anti-Drillers Protest Steelers Game Over Breast Cancer Donation”
Best of the Rest

Marcellus & Utica Shale Story Links: Mon, Oct 27, 2014
October 27, 2014October 27, 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: Mon, Oct 27, 2014”
Energy Services | EnLink Midstream

EnLink Midstream’s Primary Focus in the Marcellus/Utica is…
October 24, 2014October 24, 2014

EnLink Midstream, the newly combined Crosstex Midstream + Devon Energy midstream division, has announced a “drop down transaction”–which means on paper they transferred assets from one corporate entity to another–both entities owned by EnLink. That is, they sold themselves their own assets. On paper, the “transaction” is valued at $192 million and includes E2 Appalachian Compression, LLC and E2 Energy Services, LLC, both subsidiaries with operations in the Marcellus/Utica. Beyond the financial mumbo jumbo in their announcement, MDN found one line of interest that talks about what, exactly, EnLink’s “primary focus” in the Marcellus/Utica is…
Read More “EnLink Midstream’s Primary Focus in the Marcellus/Utica is…”
Energy Companies | Lease & Royalty Payments | Shore Exploration & Production | Statewide VA | Virginia

What Were Landowners in Central VA Paid for a Lease Bonus?
October 24, 2014October 24, 2014

We consider Virginia “northeast” as far as coverage goes on MDN. While the Marcellus skirts the very edge of the state and there’s very little Marcellus that would like ever get drilled in Virginia, there are other shale basins in the state, one of which is the Taylorsville Basin–south and east of Fredericksburg, VA. MDN told you in April that Shore Exploration has leased 84,000 acres in the Taylorsville Basin (see Virginia Inches Closer to Shale Drilling in Taylorsville Basin). We now know what they paid per acre for those leases (hint: not very much by Marcellus/Utica standards)…
Read More “What Were Landowners in Central VA Paid for a Lease Bonus?”
Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

Fracking Big Part of Only Debate in NY Gov Race
October 24, 2014October 24, 2014

The issue of fracking was part of the one and only debate in the New York governor’s race on Wednesday. Little known (outside of New York) Rob Astorino is the Republican candidate. He’s the County Executive for Westchester County, NY. He referred to current Gov. Andrew Cuomo as “politically paralyzed” on the issue of fracking–an apt and accurate description…
Read More “Fracking Big Part of Only Debate in NY Gov Race”
Energy Companies | EQT Corp

EQT 3Q14: Revenue Up 12%, 91 New Wells Spud in Northeast
October 24, 2014October 24, 2014

Northeast drilling was good for EQT in the third quarter of 2014. The company released their 3Q14 numbers yesterday and it shows revenue was up 12% from a year ago. During 3Q14 EQT, spud (drill bit hits the ground and starts drilling) 42 wells in the Marcellus, 13 Upper Devonian wells, and 36 Huron wells–all in the northeast. Production sales volume was up 25% in 3Q14, midstream gathered volumes were up 24%, and midstream costs were down 18%. The numbers are going in the direction they should be going. The only problem for the company is the low price of natural gas…
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Energy Companies | Rex Energy

Rex Energy 3Q14: Production Up 72%, Oil & Condensate Up 61%
October 24, 2014October 24, 2014

Rex Energy, the little energy company that could (and is) continues to impress. Earlier this week Rex released their third quarter 2014 production update. Rex, focused mainly on Marcellus and Utica drilling, increased production 72% over 3Q13–to 169.7 million cubic feet equivalent per day, or Mmcfe/d. That’s a very healthy 32% jump from second quarter this year. They expect to be producing 179 Mmcfe/d by the time Dec. 31 rolls around. Here’s the full update from Monday:
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Energy Services | MarkWest Energy

MarkWest Energy 3Q14: Nearing Full Capacity in the Marcellus
October 24, 2014October 24, 2014

MarkWest has over 20 drillers as customers in the Marcellus/Utica, and the northeast continues to be the company’s main area of focus, according to their third quarter 2014 operational update. If you take all of their (many) processing facilities in the Marcellus, MarkWest says utilization rates went from 79% in 2Q14 to 84% in 3Q14. That means out of a theoretical 100% maximum capacity, 84% of it is now being used. In the Utica the utilization rate went from 56% in 2Q14 to 63% in 3Q14. Here’s more on what’s happening in the northeast for MarkWest…
Read More “MarkWest Energy 3Q14: Nearing Full Capacity in the Marcellus”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Kinder Morgan | Pipelines | Regulation | Tennessee Gas Pipeline

Deerfield MA “Bans” Kinder Morgan TGP Pipeline – Or So They Claim
October 24, 2014October 24, 2014

In September MDN pointed out the antics of the silly nutters in the Town of Deerfield, Massachusetts. The county Board of Health claims they have “unlimited power” to stop the Tennessee Gas Pipeline from coming through their township, if they decide to exercise their impressive (super) powers (see MA Town Health Board Claims “Unlimited Power” to Stop TGP). They’ve just decided to exercise those “powers.” In a breathtakingly bold (and stupid) move, they’ve served notice to Kinder Morgan that all construction on the proposed TGP pipeline in their town is forthwith banned. Of course, according to law, only the Federal Energy Regulatory Commission has the power to authorize (or not) the pipeline through Deerfield–but why spoil a really good acid trip flashback for the old hippies behind this nonsense? Lawlessness is very fashionable these days…
Read More “Deerfield MA “Bans” Kinder Morgan TGP Pipeline – Or So They Claim”
Anti-Drilling/Fossil Fuel | Crestwood Midstream | Energy Services | Industrywide Issues | New York | Schuyler County

NY Anti-Driller Steingraber Tries to Get Re-Arrested at Seneca Lake
October 24, 2014October 24, 2014

In March 2013, Ithaca College “distinguished scholar in residence” Sandra Steingraber, along with 11 other anti-drillers, were arrested for illegally blocking the entrance to a depleted salt mine along the shore of Seneca Lake near Watkins Glen, NY that Crestwood Midstream wants to use to store liquefied petroleum gas, i.e., propane (see NY Protesters Arrested for Blocking NatGas Storage Facility). Steingraber actually went to jail because she refused to pay a fine for her stunt (see NY Anti-Drilling Protesters Jailed After Refusing to Pay Fine). Since it’s been over a year since she was in the slammer, Steingraber must have the itch to go back in (it sometimes happens to convicts), so she convinced a few retirees with nothing better to do to stage a new illegal blockade of the facility. Of course, with no activity at the facility–on hold because New York Gov. Cuomo can never make a decision about anything dealing with natgas–the illegal blockade didn’t much matter to anyone but a few reporters…
Read More “NY Anti-Driller Steingraber Tries to Get Re-Arrested at Seneca Lake”
Pennsylvania | Statewide PA

MSC Releases New Video – “Shale: Unifying America”
October 24, 2014October 24, 2014

Want to watch a video that makes you feel good (and chokes you up) all at the same time? Following its annual meeting this week, the Marcellus Shale Coalition (MSC) released a new year-in-review video titled Shale: Unifying America. “This video highlights and reflects the game-changing benefits tied to safe, job-creating shale development for our communities, the entire Commonwealth and our nation,” said MSC President Dave Spigelmyer. “Shale truly is, in every sense, strengthening and unifying our nation, and our industry is deeply committed to and focused on ensuring that these opportunities are fully realized for Pennsylvania families and small businesses.” Take 9 minutes to watch it here…
Read More “MSC Releases New Video – “Shale: Unifying America””
Best of the Rest

Marcellus & Utica Shale Story Links: Fri, Oct 24, 2014
October 24, 2014October 24, 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: Fri, Oct 24, 2014”
Air Quality | Hydraulic Fracturing | Industrywide Issues | Research

New Western Study IDs Drill Site Equipment that Pollutes Most
October 23, 2014October 23, 2014

An ongoing issue for shale drilling is the seeming conundrum that although we’re burning more natural gas and therefore the air, on average, is cleaner–the air is not cleaner in heavily drilled counties. We’ve seen studies in Pennsylvania (see PA DEP Report: Counties with Fracking Have More Air Pollution), West Virginia (see Did WVDEP Ignore It’s Own Research on Shale Well Air Pollution?) and now Ohio (see UC Hints Air Problems Near Drill Sites in Carroll County Research) that tell us where there’s drilling, there’s far more air pollution. This is an important issue that isn’t going away. Two days ago researchers at the University of Colorado at Boulder and the National Oceanic and Atmospheric Administration (NOAA) say they’ve identified what, precisely, is doing the polluting at drilling sites…
Read More “New Western Study IDs Drill Site Equipment that Pollutes Most”
Industrywide Issues | Pennsylvania | Regulation | Statewide PA

New Law: PA Monthly Production Reports Starting in 2015
October 23, 2014October 23, 2014

On Tuesday MDN told you about two new bills passed in the Pennsylvania legislature–one that will move oil and gas reporting from every six months to every month, the other that requires drillers who have leases expire to issue a “surrender document” as proof the lease has ended (see 2 Bills on PA Gov’s Desk: Monthly Production #s, Lease Termination). Both bills where authored and sponsored by Rep. Tina Pickett (Republican, Bradford/Sullivan/Susquehanna). Good news for landowners–Gov. Tom Corbett signed both bills into law yesterday. Beginning next year (March 31, 2015), PA will move from semi-annual to monthly production reports…
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Industrywide Issues | Regulation

EPA Inspector General’s Response to Sen. Inhofe: Screw You
October 23, 2014October 23, 2014

As MDN has previously pointed out, the Inspector General of the federal Environmental Protection Agency (EPA), Arthur A. Elkins, is a man who marches to the beat of his own drum (see EPA Inspector General: Bring Out the Jackboots on Methane). Sen. James Inhofe (R-Oklahoma) sent Elkins a letter on Oct. 2 asking that the IG’s office to not proceed with a review of the EPA and the individual states and their ability to manage threats to water resources from hydraulic fracturing. That is, don’t open the can of worms that the feds should begin regulating oil and gas drilling by abusing laws like the federal Clean Water Act. Elkins just responded back three weeks later (see his letter below). He politely said to Inhofe, screw you…
Read More “EPA Inspector General’s Response to Sen. Inhofe: Screw You”