Marcellus Drilling News

Industrywide Issues | Pipelines | Research

EIA Says 1/3 Natgas Pipelines in Northeast Bidirectional by 2017
December 2, 2014December 2, 2014

The U.S. Energy Information Administration is out with a new report today that says fully 1/3 of the major interstate natural gas pipelines that serve the northeast will be bidirectional by 2017–in just three years. That is, instead of bringing gas to the northeast, those same pipelines will be flow gas out of the northeast. Why? One word: Marcellus. Here’s the expert analysis by some of the best minds in the business (and we sincerely mean that)…
Read More “EIA Says 1/3 Natgas Pipelines in Northeast Bidirectional by 2017”
Energy Services | Industrywide Issues | Pipelines | Regulation | TC Energy/TransCanada

More Marcellus Gas Set to Flow into Canada Following NEB Approval
December 2, 2014December 2, 2014

TransCanada, one of North America’s largest midstream (pipeline) companies, has just received a key approval from the Canadian National Energy Board (NEB) that allows the company to raise rates on their main natural gas pipeline. The NEB approval ratified an agreement between TransCanada and its shippers worked out some two years ago. The reason the approval is news is this: “It gives all shippers the flexibility to source gas from various geographic locations including the Marcellus shale plays in the U.S., while ensuring that tolls are stable and set at levels that allow TransCanada to recover its system-wide costs.” In other words, more (cheap and abundant) Marcellus Shale gas will likely begin to flow into Canada. And that’s a good thing, as Martha Stewart says…
Read More “More Marcellus Gas Set to Flow into Canada Following NEB Approval”
Industrywide Issues | Pennsylvania | Supply Chain | Washington County

Marcellus Supply Chain Success for PA Company Producing Mulch
December 2, 2014December 2, 2014

We love a good supply chain story, and we’re always surprised at the innovations small business owners create to meet the demands of the growing Marcellus Shale industry. Here’s a new one for us: A company in southwestern Pennsylvania has quadrupled the number of employees–from 25 to 100–over the past five years by creating…mulch?! Yep, mulch. You know, wood chips. And the business has grown like a rocket because of the Marcellus Shale…
Read More “Marcellus Supply Chain Success for PA Company Producing Mulch”
Industrywide Issues | Marshall County | Ohio County | Statewide WV | Wastewater | West Virginia

New Brine Processing Plant Coming to Panhandle of WV
December 2, 2014December 2, 2014

The new owners of what was the AOP Clearwater brine processing plant in Marion County, WV (renamed to Fairmont Brine Processing) plan to grow their successful operation by opening a much larger, second plant in Wheeling, WV. The last time MDN wrote about the AOP Clearwater plant was in March 2010 (see AOP Clearwater Plant in WV a Big Success in Treating Marcellus Shale Wastewater). Apparently the “big success” didn’t last for AOP. An engineering firm was called in to evaluate the plant and told them they would need $10 million in upgrades, so AOP Clearwater cleared out. The guy who owned the engineering firm believed in the project, got some investors and bought the plant himself. Dave Moniot, CEO of both Venture Engineering and now Fairmont Brine Processing, turned the plant around. He’s now using that success to expand with a second plant in Wheeling…
Read More “New Brine Processing Plant Coming to Panhandle of WV”
CNG/LNG | Industrywide Issues | Marshall County | Ohio County | Statewide WV | West Virginia

New LNG Plant for Drillers Coming to Panhandle of WV
December 2, 2014December 2, 2014

LNG (liquefied natural gas) use is beginning to pick up in the Marcellus/Utica. Demand for LNG is increasing as drillers shift away from using diesel fuel to power rigs and instead use field gas, CNG (compressed natural gas) and LNG. Sensing an opporunity to serve drillers in the tri-state area of PA, WV and OH, Dave Moniot, CEO of Fairmont Brine Processing, who is also building a new brine plant in Wheeling (see today’s related story), is investing in an LNG plant in the Wheeling area–likely at the same site where he’s building a new brine processing plant. Moniot is partnering with Plum Energy to build the new plant under the name of TriState LNG…
Read More “New LNG Plant for Drillers Coming to Panhandle of WV”
Best of the Rest

Marcellus & Utica Shale Story Links: Tue, Dec 2, 2014
December 2, 2014December 2, 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, Dec 2, 2014”
Energy Companies | Pennsylvania | Range Resources Corp | Washington County

Range Resources to Flare Their First Utica Well in Western PA
December 1, 2014December 1, 2014

Flaring a well–which involves burning the initial volume of natural gas (typically waste gas) or because a pipeline is not yet available to hook up to the well–is increasingly a rare event. Most companies attempt to capture even the initial amounts of gas. However, Range Resources is set to begin flaring their very first Utica Shale well, drilled about 10 miles from Washington, PA on the property of the Claysville Sportsmen’s Club in Donegal Township, east of Dutch Fork Lake. The flaring will begin on Dec. 7 and according to Range it will be really big, and really noisy…
Read More “Range Resources to Flare Their First Utica Well in Western PA”
Accidents | Energy Services | Harrison County | Industrywide Issues | MarkWest Energy | Ohio | Pipelines | Regulation | Statewide OH

MarkWest Fined $320K by Ohio EPA for Mud Spills in Creeks/Swamps
December 1, 2014December 1, 2014

MarkWest Energy, the largest midstream company in the Marcellus/Utica, has spent the last three years building pipelines in eastern Ohio to connect wells to processing plants and to larger interstate pipelines. In the process, the company has spent some $2.2 billion building 350 miles of pipeline (and processing plants)–and MarkWest isn’t done yet. However, during the rapid buildout of infrastructure in the Buckeye State, some minor spills have happened along the way. When drilling under creeks and swamps (otherwise renamed as “wetlands”), occasionally drilling mud spilled out–some 19 different times between 2012 and 2013. The Ohio EPA has concluded their investigation and has just fined MarkWest $320,000 for the series of spills…
Read More “MarkWest Fined $320K by Ohio EPA for Mud Spills in Creeks/Swamps”
Industrywide Issues | Landfills | Luzerne County | Pennsylvania | Soil

Shale Cuttings Used to Rehab Site of Future Business, Amphitheater
December 1, 2014December 1, 2014

A story from Hazelton, PA totally refutes the argument that drill cuttings (leftover rock and dirt from shale drilling) are radioactive and will make you glow in the dark–a claim frequently made by anti-drillers. The scars of coal mining dot the landscape in northeastern PA. In one such area, on the edge of Hazelton, sits a 270-acre site with abandoned mines and an old landfill. The location, known as Hazelton Creek Properties, is in the process of reclaiming part of the site by using (yes) drill cuttings. The site will eventually host an amphitheater for concerts and other businesses. People will one day be sitting directly over top of shale cuttings!…
Read More “Shale Cuttings Used to Rehab Site of Future Business, Amphitheater”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Kinder Morgan | Pipelines | Tennessee Gas Pipeline

Anti-Pipeline Arguments in New Hampshire Debunked by MDN Reader
December 1, 2014December 1, 2014

A conservative and a liberal get into a discussion at a local landfill about a plan to run a new pipeline through their state…. Sound like the setup to a joke? It’s no laughing matter. MDN subscriber Rick G. from New Hampshire recently had such an encounter. The arguments Rick heard from those opposed to the Kinder Morgan pipeline, and his counter arguments, are instructive for us all…
Read More “Anti-Pipeline Arguments in New Hampshire Debunked by MDN Reader”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Ohio | Regulation | Statewide OH

OH Senate Asked to Fix Language in Frack Chemical Reporting Bill
December 1, 2014December 1, 2014

Anti-drillers are fundamentally unhappy people. They want no drilling, so in an effort to try and scuttle drilling, they do stupid things–like last year when they forced a change in Ohio away from filing lists of chemicals used at drill sites electronically to having them filed by paper instead (see OH Antis Force Change in Chemical Reporting, Everyone Less Safe). Going backward is not a good plan, so the Ohio Dept. of Natural Resources (ODNR) lobbied for new changes in the chemical reporting law to fix the mess caused by anti-drillers. The changes were made two weeks ago when an omnibus environmental and agricultural bill was passed by the Ohio House. Problem is, the changes made weren’t the ones ODNR wanted…
Read More “OH Senate Asked to Fix Language in Frack Chemical Reporting Bill”
Energy Companies | Industrywide Issues | Litigation | Pennsylvania | Range Resources Corp | Washington County

PA Family Sues Range Resources over Nearby Drilling, Impoundment
December 1, 2014December 1, 2014

Range Resources has for years been battling allegations that their wastewater impoundments in Washington County, PA have leaked and polluted nearby water wells. The Pennsylvania Dept. of Environmental Protection (DEP) investigated and in September levied a $4.15 million fine against Range, requiring the company to close five of seven impoundments (see PA DEP Fines Range Resources $4.15M for Wastewater Impoundments). Along the way several landowners have sued Range–over the impoundments and over nearby drilling. Add one more to the list: The Lauff family in Mt. Pleasant Township has filed a lawsuit alleging negligence by Range in the way they drilled several nearby wells and in their operation of a wastewater impoundment…
Read More “PA Family Sues Range Resources over Nearby Drilling, Impoundment”
Allegheny County | Industrywide Issues | M&A | Pennsylvania

Florida Condo Developer Buys 500 Acres of Marcellus/Utica Leases
December 1, 2014December 1, 2014

A deal to sell Wroblewski Oil and Gas, a small exploration and production and frac sand company headquartered in western PA, was announced last week. Wroblewski owns leases on 500 acres of Marcellus/Utica Shale leases–about enough to drill one well. The interesting thing, for MDN, is who is doing the buying: American Leisure Holdings, Inc. American Leisure, according to what we can find, develops vacation real estate properties (condos and such) in Florida. So what in the world are they doing buying a small Marcellus E&P company?…
Read More “Florida Condo Developer Buys 500 Acres of Marcellus/Utica Leases”
Economic Impact | Energy Services | Industrywide Issues | Pennsylvania | Statewide PA | UGI Energy Services

UGI Central Penn Natgas Rates Go Down Thanks to the Marcellus
December 1, 2014December 1, 2014

Once again, the cost of natural gas for customers in northeast and central Pennsylvania is going down. UGI, a major utility in PA, announced last week that rates for customers of their UGI Central Penn Gas subsidiary will go DOWN starting today. Why? Instead of buying expensive natural gas produced in the Gulf of Mexico and flowing it, via pipeline, to PA, UGI is now sourcing some 80% of their natural gas from the local Marcellus Shale. Thank you Marcellus! Here’s the announcement, with how much customers will save, on average, per month…
Read More “UGI Central Penn Natgas Rates Go Down Thanks to the Marcellus”
Industrywide Issues | NGLs | Research

EIA Coins New Term, Issues Report on Hydrocarbon Gas Liquids (HGLs)
December 1, 2014December 1, 2014

It’s vocabulary day at MDN. The U.S. Energy Information Administration, our favorite government agency, has just released a new report on, and has coined a new term, called: Hydrocarbon Gas Liquids (HGL). In a nutshell, EIA uses the term HGL to refer to the combination of NGLs (natural gas liquids like ethane, propane and butane) and olefins (things like ethylene, propylene, butylene, and isobutylene). If you’re new to this whole shale gas thing and to the oil and gas industry, you need to know that the hydrocarbons coming out of the ground (oil and gas) are tightly connected to–in fact the source of–things like plastic and antifreeze. That is, oil and gas is part of the petrochemical industry. The EIA recognizes the importance and connection between petrochemicals and shale, and so have authored a new report, titled “Hydrocarbon Gas Liquids (HGL): Recent Market Trends and Issues” (full copy embedded below). Since there’s a lot of “wet gas” in the Marcellus and Utica Shale, the petrochemical industry is tightly connected to shale drilling in the northeast. This report connects the dots…
Read More “EIA Coins New Term, Issues Report on Hydrocarbon Gas Liquids (HGLs)”
About MDN | Calendar

Calendar of Events for Dec 1-14, 2014 [Free]
December 1, 2014December 1, 2014

Below are upcoming events for this week and next. To see the full list of future events, visit this page: //marcellusdrilling.com/calendar/.

NOTE: To have an item included, please email it to: calendar@marcellusdrilling.com.
Read More “Calendar of Events for Dec 1-14, 2014 [Free]”