Marcellus Drilling News

Energy Services | Pennsylvania | Statewide PA | UIL Holdings

UIL Makes it Official: $1.86B Deal to Buy Phila. Gas Works is Dead
December 5, 2014December 5, 2014

Sensing that the corrupt Philadelphia City Council will not budget–will not even talk to UIL Holdings about their proposed $1.86 BILLION offer to purchase the municipal-owned Philadelphia Gas Works (PGW)–the company has pulled the plug on the deal. It’s now officially 100% dead. Even though UIL has assured and reassured anyone who would listen that they won’t come in and fire the union workers, and that they would accelerate an already-ambitious schedule of upgrading PGW’s failing pipeline infrastructure, City Council members are stuck in the pockets of powerful unions and shadowy others in the background who opposed the deal. UIL has been more than patient. Philly’s dream of being an “energy hub” in the northeast is also dead along with the deal…
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Antero Resources | CNG/LNG | Energy Companies | Energy Services | Exporting | Industrywide Issues | WGL Holdings

WGL & Antero to Provide Marcellus Gas to India via Cove Point
December 5, 2014December 5, 2014

An exciting announcement yesterday. You know that Dominion was given the green light in September and is now building an LNG (liquefied natural gas) export facility in Cove Point, Maryland (see Dominion Gets Final Fed Approval to Build Cove Point LNG Plant). Dominion has already lined up Japan and India to purchase all of the LNG the plant can produce. The question has remained, who will ship natural gas to the plant, and where will that gas come from? Stands to reason most of it (perhaps all of it) will come from the Marcellus and Utica. We previously told you that Cabot Oil & Gas is one of the suppliers–supplying 0.35 billion cubic feet per day (Bcf/d) of gas to Japan when the plant is up and operating (see Cabot Signs Deal to Export Gas via Cove Point, MD). We now know of the first official supplier for India: WGL Midstream, using Marcellus gas supplied by Antero Resources…
Read More “WGL & Antero to Provide Marcellus Gas to India via Cove Point”
Columbiana County | Energy Services | Industrywide Issues | Monroe County | Ohio | Pipelines | Regulation | Spectra Energy | Statewide OH

FERC Approves OPEN Pipeline in Eastern OH, Gas Goes to Gulf Coast
December 5, 2014December 5, 2014

Christmas continues to come a few weeks early for some of our biggest midstream (pipeline) companies. MDN told you earlier this week that the Federal Energy Regulatory Commission (FERC) had approved the Constitution Pipeline from NEPA up into NY. We now have word that FERC has approved Spectra Energy’s OPEN (Ohio Pipeline Energy Network) project in Ohio. Spectra originally announced the project in December 2011, a project that will build 76 miles of new pipeline from Columbiana County to Monroe County to connect to the Texas Eastern Pipeline, and then reverse the flow–make it bidirectional–on the Texas Eastern in order to carry Marcellus and Utica Shale gas from eastern Ohio to the Gulf Coast. Spectra finally filed a full, official application with FERC in February of this year (see Spectra Energy Files Formal Request with FERC for OPEN Pipeline). On Tuesday, FERC gave its final blessing for the OPEN project…
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Energy Services | Industrywide Issues | Kinder Morgan | Lease & Royalty Payments | Pipelines | Tennessee Gas Pipeline

Skeptical MA Farmers Hear From/Talk To Kinder about TGP Expansion
December 5, 2014December 5, 2014

The Massachusetts Farm Bureau Federation is holding its annual two-day convention yesterday and today at the University of Massachusetts in Amherst. One of the talks yesterday was given by reps from Kinder Morgan, to talk about the proposed expansion of the Tennessee Gas Pipeline through (now) only part of Massachusetts. What can farmers expect if the Northeast Energy Direct (NED) project cuts across their land? Even though 90% of the pipeline will track with an existing power line right-of-way, how deep will the pipeline be buried? How much of a right-of-way will be required? What about trees? Those questions and more were addressed…
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Industrywide Issues | Research | Reserves (Proved and Unproved)

EIA: Proved Reserves for Natgas Up 10% Last Year, Marcellus Leads
December 5, 2014December 5, 2014

If you knock around the oil and gas industry more than a day or two, you’re bound to hear industry veterans talking about (particularly in reports to investors) something called “proved reserves.” Proved reserves, according to the U.S. Energy Information Administration (EIA), “are those volumes of oil and natural gas that geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions.” That is, proved reserves are what’s in the ground now, can be gotten out, and we can prove it. A new report issued yesterday by the EIA says proved reserves for natural gas went up a huge 10% last year–to an all-time record high of 354 trillion cubic feet. And where did proved reserves go up the most? Yep, the Marcellus in PA and WV…
Read More “EIA: Proved Reserves for Natgas Up 10% Last Year, Marcellus Leads”
Industrywide Issues | New York | Regulation | Statewide NY

NY’s “Progress” to Control Bakken Crude Trains Passing Through
December 5, 2014December 5, 2014

The issue of shipping Bakken crude oil on rail cars, many of which pass through New York State on the way to the Port of Albany, continues to be news in the Empire State. MDN told you in July that all New Yorkers are now less safe because of actions by the state government to disclose to the public (not just first responders) routes those shipments take through NY state (see New York Caves to Anti-Drillers Again: Discloses Oil Train Movements). Just coming to light for MDN, in January of this year Gov. Andrew Cuomo issued Executive Order (EO) 125 directing state agencies to conduct a “coordinated review” of NY’s crude oil incident prevention and response capacity. Earlier this week the agencies provided a status update to Cuomo (full copy embedded below). The upshot seems to be the state is pointing fingers at the railroad industry and the federal government, telling them to get their act together to protect NY residents…
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Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania | Statewide PA

Nutjob Alert: Philly Rally Today to Protest Fossil Fuels
December 5, 2014December 5, 2014

A bunch of kooks and environmental radicals are gathering this morning in Philadelphia because, well, because they have nothing better to do. The rally is, unbelievably, against fossil fuels. And how will these nutters get there? By driving cars, taking trains and buses, etc. All of which use fossil fuels. That’s after getting up this morning in a home heated by fossil fuels and getting dressed with clothes that have fossil fuel fibers in them and shoes and sneakers manufactured from fossil fuels. And so the “we hate fossil fuelers” from 350 Philadelphia, Berks Gas Truth, Clean Air Council, Clean Water Action, THE Delaware Riverkeeper, Food & Water Watch, Keystone Catholics, Maypop Collective, North of Washington Avenue Coalition, Penn Environment, Pennsylvania Federation BMWED – Teamsters, Poor People’s Economic Human Rights Campaign, Philadelphia Area Student Fossil Fuel Divestment Campaigns, Philadelphia Be the Change, Philadelphia Interfaith Power and Light, Protecting our Waters, Rising Tide Philly, Sierra Club, Beyond Natural Gas will gather this morning to protest against fossil fuels. How rich…
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Industrywide Issues | Jobs | Litigation | Supply Chain

Thorny Issues in Using Independent Contractors in Shale Drilling
December 5, 2014December 5, 2014

Most exploration & production (E&P) companies–the ones who risk the money to have oil and gas wells drilled–don’t actually DO the drilling themselves. They hire it done by using oilfield services companies like Schlumberger, Halliburton and Baker Hughes. In addition, they hire just about everyone done–from security at well pads to earth moving to water trucking to you name it. The shale drilling industry, particularly in the Marcellus and Utica, is a bonanza for local businesses or “independent contractors” that plug in to the industry supply chain. However, there are some negatives for E&Ps when it comes to using independent contractors rather than having employees on the payroll do the work. The sharp lawyers at Vorys, Sater, Seymour and Pease say lawsuits alleging violations of the Fair Labor Standards Act are now more common than employment discrimination cases for oil and gas companies. They’ve just issued an alert/advisory on the pros and cons of using independent contractors in the oil and gas industry…
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Best of the Rest

Marcellus & Utica Shale Story Links: Fri, Dec 5, 2014
December 5, 2014December 5, 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, Dec 5, 2014”
Industrywide Issues | Pennsylvania | Statewide PA | Taxation

Time for Gov-Elect Wolf to Pay the Piper – Severance Tax High on List
December 4, 2014December 4, 2014

It’s payback time for newly elected Pennsylvania Democrat Gov. Tom Wolf. He took radical California environmentalist Tom Steyer’s money, millions of it, to get elected (see CA Anti-Driller Tom Steyer Purchasing Tom Wolf PA Governorship). Now that Wolf has been elected, the bill has come due. Time to pay the pied piper. The price? Get a Marcellus-killing severance tax passed. Right on cue that’s just what Wolf is doing–his master’s bidding…
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Industrywide Issues | Pennsylvania | Regulation | Sand/Proppant | Wyoming County (PA)

Revisiting Frac Sand Facility Controversy in Tunkhannock, PA
December 4, 2014December 4, 2014

We’re happy to bring you another perspective on the controversy in Tunkhannock, PA over a proposed frac sand transfer station. In October we told you about residents around Tunkhannock who are pushing back against a facility being proposed by Hi-Crush/D&I Silica (see NEPA Town Residents Resist Frack Sand Transfer Station). What caught our eye was the antics of one of the locals who dressed up in a canary outfit to conjure the image of a canary in the mine shaft. Seemed to us that perhaps anti-drillers were opposing the project. We then referenced the D&I project when we wrote about another frac sand facility where the town and company worked out their problems like adults (see WV Sand Company & Community Work Together to Solve Problem). We were recently contacted by an MDN subscriber who lives in Tunkhannock to say, “Hold there Jim, there is another side to this story…”
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Economic Impact | Energy Services | Energy Transfer Partners | Industrywide Issues | Jobs | Ohio | Pipelines | Statewide OH | Taxation

Property Tax Revenue/Economic Impact from ET Rover Pipeline in OH
December 4, 2014December 4, 2014

Seems like “all of a sudden” large pipeline projects planned for the northeast have begun talking about how much property taxes (and economic impacts) their projects will pay out. Yesterday it was the 550-mile Atlantic Coast Pipeline project from Dominion (see Atlantic Coast Pipeline: $25M/Yr in Prop. Tax, $70M/Yr Econ Impact). Today? Energy Transfer Partners’ Rover pipeline, a 620-mile pipeline that will carry Marcellus and Utica Shale gas west, through Ohio into Michigan and on to Ontario, Canada (see Big News: ETP “Rover” Marcellus/Utica Pipeline to Midwest/Canada). How much of an economic impact and how much in property tax will it pay out? We have some numbers…
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Air Quality | Industrywide Issues | Research

New Research: Fugitive Methane Declines, Without Onerous EPA Regs
December 4, 2014December 4, 2014

Play along for a minute. Pretend you believe that carbon (the thing you breathe out with every breath) and so-called “fugitive” methane (rascally devil escapes from oil and gas drilling operations) are causing the earth’s temp to spike. We know, we know. The earth’s average temp hasn’t gone up in 18 years–but we said, just play along here for a minute, k? If you’re a man-causes-global warming believer, it stands to reason you’d like to see less carbon and less methane. Both are already happening–without the jackbooted regulations of the federal EPA. The latest evidence is tabulated by Energy in Depth, the public relations arm of the Independent Petroleum Association of America (IPAA). EID’s report tabulates the latest science which shows fugitive methane emissions in major shale plays–including the Marcellus and Utica–have gone DOWN, significantly–from 2011 to 2013…
Read More “New Research: Fugitive Methane Declines, Without Onerous EPA Regs”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

NY Radicals Ask Cuomo to Ban Fracking Because of Global Warming
December 4, 2014December 4, 2014

Not that it’s been hiding anywhere, but the truth comes out (yet again). A group of 75+ individuals masquerading as “groups of people” have signed and sent a letter to New York Gov. Andrew Cuomo (full copy below) requesting that he ban fracking statewide. Why? Because of their belief that mankind is causing global warming by burning fossil fuels. That is, because they hate fossil fuels. They hate the fossil fuels used to manufacture the computers on which they typed the letter to Cuomo. They hate the fossil fuels they use to travel to work. They hate the fossil fuels that are part of the clothes they wear (petrochemical fibers) and the sneakers on their feet. They hate the fossil fuels they use to heat their homes. Yep, the so-called environmentalists who use fossil fuels every day of their lives–hate them. We call it insanity. Fracking Derangement Syndrome (FDS). Left-wing newspapers like the Albany Times Union dutifully report it like its actually news…
Read More “NY Radicals Ask Cuomo to Ban Fracking Because of Global Warming”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Litigation

Enviro Groups Sue DOT to Stop Bakken Oil Rail Shipments
December 4, 2014December 4, 2014

The radicals at Earthjustice, the Sierra Club and ForestEthics (bet you didn’t know that forests have ethics, didja?) have sued the federal Dept. of Transportation to challenge the DOT’s refusal to ban railroads from shipping crude oil via rail from the Bakken (and other shale plays). This is the same tactic repeatedly used by anti-drillers (and leftists everywhere) to create new laws without getting Congress involved. Sue a regulatory agency, win the lawsuit, then the agency is “forced” to enact a regulation it (supposedly) didn’t want to enact–at the gun point of a lefty judge. (Watch this video of Oklahoma Attorney General Scott Pruitt for an explanation of how they do it.) What Earthjustice and their ilk continue to do to our justice system is sick…
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Commodity Price | Industrywide Issues | New York | Research | Statewide NY

Northeastern Winter Gas Outlook: More Marcellus Gas Needed in NYC
December 4, 2014December 4, 2014

Morningstar, an independent investment research and management company, is fresh out with a report titled, “Northeastern Winter Gas Outlook.” In the report, analysts take a look at the demand for natural gas by the northeast, in particular demand by New York City. What do they find? Although infrastructure (pipelines) have improved a somewhat in the last year, bringing more gas to the northeast (largely from the Marcellus), more needs to be done. Natural gas is very sensitive to supply and demand. The report states that in the past year alone over 1,000 buildings in New York City–apartment buildings and office buildings–have switched from fuel oil to natural gas for heating. That means there’s a lot more demand this winter than last–at least another 100 million cubic feet per day. If we get another extended cold snap, natural gas prices will go a lot higher in NYC…
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