Marcellus Drilling News

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…
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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…
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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…
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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…
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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”
Best of the Rest

Marcellus & Utica Shale Story Links: Tue, Nov 25, 2014
November 25, 2014November 25, 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: Tue, Nov 25, 2014”
Accidents | Blue Racer Midstream | Energy Services | Industrywide Issues | Noble County | Ohio

Was the Blue Racer Accident in Noble County, OH Preventable?
November 24, 2014November 24, 2014

Nearly two weeks ago there was a fatal accident at a Blue Racer Midstream condensate pumping skid in Noble County, OH in which an electrical contract worker was killed (see Blue Racer Midstream Explosion Kills One Worker in OH). There was precious little information about the accident–what caused it–at the time. And since then, we’ve spotted nothing. We know it takes time to investigate such things, but usually there is at least an update or two during that period. We did, however, spot a letter to the editor from a veteran oilfield petroleum engineer who claims the accident was preventable. Since this engineer doesn’t work in the northeast and has no personal knowledge of the accident, we thought it was a pretty brash statement to make. Or was it?…
Read More “Was the Blue Racer Accident in Noble County, OH Preventable?”
Energy Companies | Greene County (PA) | Lease & Royalty Payments | Marshall County | Ohio County | Pennsylvania | Tug Hill Operating | Utica Shale | West Virginia

Still Time for WV/PA Landowners to Participate in $100M Deal
November 24, 2014November 24, 2014

Landowner coalitions are certainly not new. They began in the Marcellus region around seven years ago when landowners in Pennsylvania banded together to get rates and conditions more favorably than they otherwise could on their own. Smart idea. What is new is that landowners in West Virginia are now banding together because, although Marcellus drilling takes place in the state and much of that land has been leased, the Utica Shale that underlies the state is just now getting started. So landowners, like those in Marshall and Ohio counties (in the panhandle of WV) and Greene County (in southwest PA) are forming new groups to negotiate new leases for the Utica Shale. The Marshall/Ohio/Greene landowner group did just that, recently signing a $100 million deal (see Panhandle WV Landowners Broker $100M Deal with Tug Hill Operating). A few more details about the group and the deal…
Read More “Still Time for WV/PA Landowners to Participate in $100M Deal”