Marcellus Drilling News

Chesapeake Utilities | Ohio | Statewide OH | Utica Shale

Chesapeake Utilities Buys OH Midstream Co, Targets Shale Industry
February 25, 2015February 25, 2015

Chesapeake Utilities Corporation is a diversified energy company with businesses in natural gas distribution, transmission and marketing, electricity distribution, propane distribution and wholesale marketing, and “other related services.” The utility branch of Chesapeake serves 225,000 customers with natural gas, electricity or propane gas. Chesapeake Utilities employs approximately 800 people. And no, Chesapeake Utilities, headquartered in Delaware, has nothing to do with Chesapeake Energy, headquartered in Oklahoma. Chesapeake Utilities has decided it’s time to pursue the shale market, so they recently purchased a small midstream (i.e. pipeline) company in Ohio–Gatherco, Inc….
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Carrizo Oil & Gas | Energy Companies | Guernsey County | Ohio | Utica Shale

Carrizo Call Reveals Recent Results for Guernsey, OH Utica Well
February 25, 2015February 25, 2015

A few weeks ago Carrizo Oil & Gas announced they would not do any new drilling in the Marcellus/Utica in 2015 and instead pull back and concentrate on other plays–namely the Eagle Ford in Texas (see Carrizo Cuts Budget 35%, No Drilling Planned in Utica/Marcellus in 2015). In an analyst call yesterday Carrizo officials reiterated that strategy, saying they were still “early” to the play and lack of pipeline infrastructure played a role in their decision to suspend Utica drilling. They also had some interesting things to say about the production coming from a Utica well just brought online in Guernsey County and their future prospects for drilling in the condensate window of the play–whenever they return to the Utica…
Read More “Carrizo Call Reveals Recent Results for Guernsey, OH Utica Well”
Forced Pooling | Industrywide Issues | Statewide WV | West Virginia

WV HB2688 Forced Pooling Bill Continues March Toward Passage
February 25, 2015February 25, 2015

Last week MDN gave you a heads-up that a new forced pooling bill has picked up steam and is moving through the process in the West Virginia legislature (see WV Forced Pooling Bill HB2688 – Good or Bad for Landowners?). The 60-day legislative session in WV is now just past the halfway mark and HB2688 continues to move. It passed the House Energy Committee and is now before the House Judiciary Committee. The bill is polarizing. It seems, at least at a distance, that Republicans (who control both the House and Senate in WV) are lining up to support the bill, and Democrats are lining up to oppose it. Which puts us in the strange circumstance of tilting to the Dem side on this issue. Below we’ve located a good rundown of the main provisions in the bill, along with an editorial written by a House Democrat who opposes the bill–listing his reasons…
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Allegheny County | Chevron | Energy Companies | Pennsylvania

Chevron Consolidates Reduced Marcellus Workforce Under One Roof
February 25, 2015February 25, 2015

In January, Chevron announced it is cutting 23% of its Marcellus Shale workforce in the Pittsburgh area (see Chevron Laying Off 23% of their Marcellus Workforce in Pittsburgh). Last July, the company put a long-planned massive new 350,000 square foot office complex project they planned to build in Moon Township on hold (see Chevron Puts Moon Twp, PA Office Building Project on Hold). The new office complex project is still under reconsideration. Meanwhile, since they’ve downsized, Chevron is consolidating the workforce under one roof, renting a new office space in Moon Township…
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Atlas Energy | Energy Companies

Atlas Resources Takes Out “2nd Lien” to Raise $250M in Cash – Why?
February 25, 2015February 25, 2015

Sometimes the world of high finance and elaborate corporate structures–particularly in the oil and gas industry–just boggles our minds. Sometimes it’s hard to wrap your brain around it. This is one of those times. In the past we’ve chronicled the rise and sale of Atlas Energy, a once-major driller in the Marcellus Shale. In 2011 Chevron bought a big chunk of Atlas for $4.3 billion (see India’s RIL Loses Bidding War for Atlas Energy – $4.3 Billion Deal with Chevron Goes Forward). The Cohen family that runs the company is interesting and colorful. They bought into the company in the 1990s and happened to be in the right place at the right time, just prior to the discovery of the Marcellus (see The Unconventional Rise & Sale of Atlas Energy). Then in October of last year, the Cohens did it again. They sold more of what was left–for a truly astonishing $7.7 billion–to Targa Resources Partners (see Atlas Energy/Pipeline Sells Itself (Again) – for $7.7 BILLION!). What’s left now? With respect to the Marcellus, we don’t think there’s much left. But Atlas still does own operating interests in Marcellus wells, so when we saw a press release from the company saying they have just taken a “second lien” on the company to raise $250 million in cash, it piqued our interest…
Read More “Atlas Resources Takes Out “2nd Lien” to Raise $250M in Cash – Why?”
Earthquakes | Industrywide Issues | Research | Wastewater

USGS Scientists: Earthquakes from Injection Wells Can be Mitigated
February 25, 2015February 25, 2015

Last week a scientific research paper was published in the magazine Science on the topic of earthquakes related to injection wells. The paper is the result of a series of workshops by the U.S. Geological Survey. Although we don’t have a copy of the full paper, we do have a summary. A summary of the summary is this: fracking shale results in a lot of fluid that gets disposed of via Class II injection wells. Some of those wells are near faults and result in tremors–most of the time unfelt. There is, in the opinion of the USGS scientists, a direct connection between the increase in fluid injection from shale drilling and the rise (and clusters) of low-level earthquakes. The good news? There are strategies for “mitigating the effects of human-induced earthquakes caused by wastewater injection” which are discussed in the paper…
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About MDN | Industrywide Issues | Landfills | MDN Resources | Wastewater

ShaleNavigator Adds Updated Frack Waste Facilities Layer to Maps
February 25, 2015February 25, 2015

As many MDN readers know, MDN editor Jim Willis partners with Ed Camp from ShaleNavigator, using ShaleNavigator’s top-notch mapping software to create the marvelous maps found in the Marcellus and Utica Shale Databook series. Ed maps the most recent round of permits issued (over the previous four months) on county maps, showing driller name and location for each volume of the Databook. But the maps show a lot more than just permit locations–like major natural gas pipelines, the locations of compressor stations and over a dozen other “layers” available to users of the ShaleNavigator service.

You can now add one more updated layer to the service: the location of frack waste facilities used by Marcellus and Utica Shale drillers. The most recent volume of the 2014 Databook, Volume 3, contains that very information: a complete list (with addresses and phone numbers) for frack waste facilities. Ed has used the location data for those waste facilities compiled for the Databook and has added the updated layer for users of his excellent service. The press release is below. Be sure to give ShaleNavigator a try by signing up for a free 7-day trial account…
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Best of the Rest

Marcellus & Utica Shale Story Links: Wed, Feb 25, 2015
February 25, 2015February 25, 2015

The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading:
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Allegheny County | Energy Companies | Industrywide Issues | Olympus/Huntley & Huntley | Pennsylvania | Statewide PA | Taxation

Wolf’s Severance Tax Threat Costs Small PA Town $315,000
February 24, 2015February 24, 2015

Two weeks ago the hapless newly elected governor of Pennsylvania, Tom Wolf, introduced a new 7.5% severance tax plan to soak the Marcellus Shale industry in his state (see PA Gov Wolf Proposes Marcellus-Killing 7.5% Severance Tax). Wolf wants to target one industry, oil and gas, to give their hard-earned money away to another industry, teachers. He’s trying to pay back all of those good union voters in Philadelphia who elected him. But Wolf’s threat of a tax is already having very tangible consequences. Huntley & Huntley Energy Exploration has pulled out of a deal to lease 90 acres of land owned by Harmar Township (Allegheny County), PA. That just cost Harmar $315,000. Why did Huntley & Huntley pull out? The uncertainty over Wolf’s severance tax. If the tax passes, a great deal of drilling in PA’s Marcellus Shale will be idled–and that’s not idle speculation…
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Coterra Energy (Cabot O&G) | Energy Companies | Pennsylvania | Susquehanna County

Cabot Cuts 2015 Budget 44%, Will Drill 70 New Marcellus Wells
February 24, 2015February 24, 2015

Last week Cabot Oil & Gas issued its fourth quarter 2014 and full year 2014 update, along with guidance on what they plan to do for 2015. In October Cabot said they would spend upward of $1.6 billion on drilling in 2015 and planned to grow their production a very healthy 20-30% (see Cabot O&G 3Q14: A Wandering Eye + Welcome to the 2 Bcf/d Club!). Last week Cabot slashed the budget to $900 million and their new planned growth projection is 10-18%. Cabot also said they’re downsizing their rig fleet–in the Marcellus they’re going from 5 rigs to 3, and in the Eagle Ford (Texas) they’re cutting back from 3 rigs to 1. Revenue for 2014 was down 63% over 2013 due mostly to the low price of natgas along with certain other “impairment” charges. Amidst the bad news of budget cuts and lower revenue, there was really good news: Cabot hit a new production high of 531.8 billion cubic feet in 2014, up 29% from 2013; proved reserves increased 36%–to 7.4 trillion cubic feet equivalent; and they still plan to drill upward of 70 new wells in 2015 in the PA Marcellus (in Susquehanna County)…
Read More “Cabot Cuts 2015 Budget 44%, Will Drill 70 New Marcellus Wells”
American Energy Partners | Chesapeake Energy | Energy Companies | Harrison County | Lease & Royalty Payments | Ohio | Utica Shale

Harrison County, OH Hauls in $1.6M in 2 Weeks from Utica Leases
February 24, 2015February 24, 2015

Even though the price of oil and natural gas is depressed, there are still lease deals happening–particularly in the Ohio Utica Shale region–that make your eyes pop out. Whoops! Just had to put an eyeball back in. It popped out at the latest lease numbers coming from Harrison County, OH where they’ve taken in $1.6 million over the past couple of weeks…
Read More “Harrison County, OH Hauls in $1.6M in 2 Weeks from Utica Leases”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Litigation | Ohio | Statewide OH

OH Anti-Drillers on Rampage after Supreme Court Home Rule Decision
February 24, 2015February 24, 2015

There’s a stark difference between pro-drillers and anti-drillers. Take pro-drillers in New York State as an example. NY landowners have had their property rights stripped away by a lawless (and spineless) governor–Andy Cuomo. Yet NY landowners soldier on. When the state’s highest court handed them an unfair and crushing blow by allowing municipalities to ban drilling, they continued to make their case and use whatever means they can–within the law–to advance their cause. NY landowners hate the fact that Cuomo and the courts have bastardized the law in the Empire State, but they continue to recognize the rule of law and abide by it. They are good citizens. Let’s contrast that with anti-drillers–say those in Ohio. When a court decision goes against anti-drillers, like the recent OH Supreme Court ruling (see OH Supreme Court Strikes Down Home Rule in Gas Drilling Case), anti-drillers in OH huffily declare they “reject” the decision. In other words, they’re lawless, like the members of the Ohio Community Rights Network (OHCRN)…
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Electrical Generation | Industrywide Issues | Marshall County | West Virginia

WV Moundsville Electric Generating Plant to Burn Methane + Ethane!
February 24, 2015February 24, 2015

Since April of last year, MDN has written about and monitored a new project to build a $615 million electrical generating plant in Marshall County, WV that will burn Marcellus Shale gas (see MDN stories about it here). Called Moundsville Power, the project received a final green light last week (see Marshall Co Gas-Powered Electric Plant Gets WV Green Light). Andrew Dorn, managing partner for Moundsville Power, recently shed more light on the project. Dorn gave a timeframe for when construction will begin, along with some other interesting factoids. Here’s something we didn’t know: the new plant will be one of the first in the U.S. to burn ethane…
Read More “WV Moundsville Electric Generating Plant to Burn Methane + Ethane!”
Accidents | Crude Oil | Fayette County | Industrywide Issues | Regulation | West Virginia

Update on Bakken Oil Train Derailment in WV; Unreported Fact
February 24, 2015February 24, 2015

Last week MDN told you about the latest train derailment hauling Bakken crude oil that occurred in West Virginia (see Bakken Oil Train Derails in WV: Destroys House, 2 Towns Evacuated). The good news is that no one was injured in the accident. However, it was/is a major disruption in the area where it happened, in Fayette County. Some of the oil ended up in the Kanawha River, one house was destroyed and two towns were evacuated. What a mess. We have an update on where things stand, along with new news that the rail cars hauling the crude were NOT the older DOT-111 style cars that have been criticized as not being strong enough–but indeed they were the newer CPC 1232 tanker cars…
Read More “Update on Bakken Oil Train Derailment in WV; Unreported Fact”
Industrywide Issues | Pennsylvania | Regulation | Statewide PA

Will DEP Sec Quigley Intentionally Miss Deadline for New Drilling Regs?
February 24, 2015February 24, 2015

Last week MDN gave you the heads up that new “acting” Sec. of the PA Dept. of Environmental Protection, John Quigley, is already signaling his desire to clamp down on the Marcellus industry. He mass-fired the members of the Oil and Gas Technical Advisory Board (OGTAB)–something no other governor and head of the DEP has done in living memory (see Why did PA DEP Acting Sec Quigley Mass Fired Gas Advisory Board?). Scott Perry, deputy secretary of the DEP, says long-awaited new regulations formulated after the Act 13 law was passed in 2012 will not be delayed because of the mass firings on the OGTAB. Others, however, are not so sure. We still see tremors of a coming earthquake in which Wolf/Quigley screw around and miss the deadline (intentionally) and then rewrite the new regulations once again, to suit their own proclivities on drilling…
Read More “Will DEP Sec Quigley Intentionally Miss Deadline for New Drilling Regs?”
Energy Services | Harrison County | Industrywide Issues | Jobs | MarkWest Energy | Ohio | Processing Plants

MarkWest Energy Accused of Using Non-Union, Non-Ohio Workers
February 24, 2015February 24, 2015

Calling OH Gov. John “foreigner hunter” Kasich. We have an infraction! Quick! You’re needed, stat. Word has leaked out that MarkWest Energy has not only reduced the number of union members they’re using on jobs in Harrison County, OH, they’re using non-union (gasp) out-of-state workers–from exotic places like Texas and Louisiana and Oklahoma. Those places have been defined by John Kasich as “foreign” locations (i.e. non-Ohio). Periodically the jingoist-in-chief gets on his high horse and goes riding after those darned foreigners (see OH Gov. Kasich Continues Trash Talk Out-of-State Workers and OH Gov. Kasich Goes After Out-of-State Engineers/Surveyors and OH Gov. Kasich Goes Foreigner-Hunting in Strasburg and OH Gov. Kasich Dedicates Hickory Bend Plant, No Foreigners Found). Well, we’ve found the site of another infraction…
Read More “MarkWest Energy Accused of Using Non-Union, Non-Ohio Workers”