Marcellus Drilling News

American Energy Partners | Energy Companies

Trusted McClendon Lt. Takes Reigns as CEO of Northeast Drilling
January 14, 2015January 14, 2015

Aubrey McClendon has just entrusted the main part of his fledgling new company, American Energy Partners LP (AELP), to a trusted lieutenant. MDN told you last week that AEP was combining their Utica and Marcellus shale operations–on paper separate entities–into one larger subsidiary of AEP called American Energy Appalachia Holdings, or AEA as they now call it (see McClendon Utica/Marcellus Subsidiaries Combine & Form New Company). The man who was/is running AEA is Jeffrey A. Fisher. Until now, Fisher was Chief Operating Officer of the American Energy Partners mothership AELP. Now he’s the CEO of AEA. That is, he’s the CEO over roughly 90% of Aubrey’s newly amassed empire…
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Air Quality | Industrywide Issues | Regulation

White House Pledges to Cut “Fugitive” Methane by 40-45%
January 14, 2015January 14, 2015

The Barack Hussein Obama administration continues to push its agenda on so-called Climate Change by ramming through unlegislated regulatory actions that threaten the oil and gas industry. The latest Obama boogeyman is that evil, nasty criminal–“fugitive methane.” Supposedly methane (natural gas to the hoi polloi) is a bazillion times more “potent” as a “greenhouse gas” than it’s less nefarious cousin CO2 (carbon dioxide, the stuff you breathe out with every breath). Of course it’s in the best interest of energy companies that extract, pipeline and sell methane to keep as much of it as possible in “the system” and from “escaping” so they can sell it–a fact that seems to escape the our brilliant leader. Inevitably, some methane molecules slip out around valves, through cracks, etc. and into the atmosphere where, according to Obama, it acts to heat Mother Earth. Never mind the average temperature of the earth hasn’t gone up for 18 years now (see Inconvenient Global Warming Fact: Avg Temp Hasn’t Risen in 18 Yrs). Right on cue the President, who persists in shredding the Constitution, is about to feed the next sheet into the shredder by having his EPA issue new regulations to control methane emissions. They claim they can cut methane emissions 40-45% by 2025…
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Allegheny County | Economic Impact | Energy Services | Industrywide Issues | Jobs | New York | Ohio | Pennsylvania | Pipelines | Statewide NY | Statewide OH | Statewide PA | Transco | Williams

Williams Spending $100 million Per Month in the Marcellus/Utica
January 14, 2015January 14, 2015

There’s an excellent regional television program in Pittsburgh called “Our Region’s Business” hosted by veteran reporter Bill Flannigan. On December 7, Jim Scheel, Senior Vice President for Northeast G&P for Williams, appeared in a segment on the program (video embedded below). Scheel shared some eye-popping statistics about the Marcellus/Utica, and about Williams and their commitment to the region. Scheel said, among many things in the short 7-minute segment, that in 2014 Williams spent an astonishing $100 million per month on pipeline projects in the northeast region. They currently employ 750 people in the northeast and over the next year or so expect to add another 160 people to the payroll. What an exciting, dynamic company! Here’s a few more stats Scheel mentioned…
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Belmont County | Energy Services | Industrywide Issues | Litigation | Ohio | Pipelines | Spectra Energy

OH Landowners ask Court to Stop OPEN Pipeline Eminent Domain
January 14, 2015January 14, 2015

In December 2014, the Federal Energy Regulatory Commission (FERC) gave final approval to Spectra Energy’s OPEN (Ohio Pipeline Energy Network) project in Ohio–a $468.5 million pipeline from Ohio to the Gulf Coast (see FERC Approves OPEN Pipeline in Eastern OH, Gas Goes to Gulf Coast). The project includes building 76 miles of new pipeline from Columbiana County to Monroe County (slicing through Belmont County along the way) to connect to the Texas Eastern Pipeline. The pipeline will then reverse its flow–making it bidirectional–in order to carry Marcellus and Utica Shale gas from eastern Ohio to the Gulf Coast. As soon as FERC issued final approval, Texas Eastern, the owner of Spectra Energy, started to issue eminent domain notices to landowners along the 76-mile route who aren’t playing ball with them. A husband and wife are pushing back. With the assistance of the Ohio 1851 Center for Constitutional Law, Roger and Lana Barack of Belmont County have filed their opposition to Texas Transmission’s notice to take “immediate possession” of their land. The Baracks and The 1851 Center call the manner in which Texas Transmission is trying to take their land “abusive” and in essence, a midnight railroading of innocent landowners…
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Industrywide Issues | Research

Jan Drilling Productivity Report: Marcellus Continues Steep Climb
January 14, 2015January 14, 2015

MDN’s favorite month report is back. The U.S. Energy Information Administration produces a monthly Drilling Productivity Report (DPR). Released on Monday, the latest DPR shows natural gas production in the Marcellus Shale region continues its rapid expansion. In January, EIA says the Marcellus will have produced on the order of 16,319 million cubic feet of gas per day (or 16.3 billion cubic feet per day). In February, they say the number will be 16.6 Bcf/d–up another 231 million cubic feet per day. The Utica Shale is expected to gain 74 million cubic feet of gas production per day from January to February, and the Utica’s oil production is expected to go up another 4,000 barrels per day over the next month…
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Anti-Drilling/Fossil Fuel | Butler County | Ethane | Health Impacts | Industrywide Issues | Pennsylvania | Processing Plants | Research

Philly Clean Air Council “Studies” Shell Cracker Plant Impacts
January 14, 2015January 14, 2015

The Philadelphia-based Clean Air Council, a partisan, anti-drilling organization, has just issued a so-called Health Impact Assessment (HIA) for the proposed Shell ethane cracker plant in Monaca, PA (full copy embedded below). The so-called HIA has a long list of “recommendations” for Shell, most of which will cost big bucks to implement. The HIA has no official standing and Shell can completely ignore it if they so choose. However, Shell says they’re studying it now and will consider the information it conveys as they continue to evaluate their plans to build a $2-$3 billion ethane cracker near Pittsburgh. Below we have the press release from the anti-drilling Clean Air Council, along with some initial response from Shell…
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Best of the Rest

Marcellus & Utica Shale Story Links: Wed, Jan 14, 2015
January 14, 2015January 14, 2015

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, Jan 14, 2015”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

PA Gov-Elect Wolf Selects Anti-Drillers to Head DEP, DCNR
January 13, 2015January 13, 2015

In a huge disappointment, Gov.-elect Tom Wolf has tapped two members of the same anti-drilling “environmental” organization–PennFuture–to head up the Dept. of Environmental Protection (DEP) and the Dept. of Conservation and Natural Resources (DCNR). Both also once worked for Gov. Ed Rendell (Wolf is acting more like Fast Eddie every day). Wolf is tapping John Quigley, who was Secretary of DCNR under Gov. Ed Rendell, to be Secretary at the DEP. Lately, Quigley has hung his hat at PennFuture as its government relations manager. His boss at PennFuture, Cindy Dunn (president of that organization), will become the Secretary of DCNR for Wolf. She served as deputy secretary of the DCNR under Rendell. It’s all kind of incestuous, isn’t it? PennFuture has a history of opposing the Marcellus industry–and now these two Rendell retreads are put in charge of managing the Marcellus industry. Unfortunately, we take that has an bad harbinger of what Wolf plans for Marcellus drilling in the Keystone State. His true colors are starting to show…
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Access Midstream Partners | Energy Services | Industrywide Issues | M&A | Williams

Wedding Day: Williams & Access Midstream Get Hitched on Feb 2
January 13, 2015January 13, 2015

It looks like February 2, 2015 will be the day of the wedding for Williams and Access Midstream. In June 2014, Williams announced a friendly takeover/merger with Access Midstream (see Big News: Williams Partners Buying Access Midstream for $6B). Access was once Chesapeake Midstream, spun off into its own company. Both Williams and Access have major operations in the Marcellus/Utica region. The takeover is going just fine and Access stocks will be distributed/swapped/split/converted/traded/whatever (makes our eyes glaze over just to read it) on Friday, January 30. By the time it’s all hashed out over the weekend, when trading begins on Monday, February 2, Access will be part of Williams…
Read More “Wedding Day: Williams & Access Midstream Get Hitched on Feb 2”
CNG/LNG | Industrywide Issues | Pennsylvania | Statewide PA

Phila. Gas Works Launches 12-Day Open Season to Expand LNG
January 13, 2015January 13, 2015

An interesting footnote to the drama that’s played out over the past 10 months in the proposed sale of the Philadelphia Gas Works (PGW), Philly’s city-owned natural gas utility. You may recall that Philly’s Democrat Mayor, Michael Nutter, worked out a deal to sell PGW for $1.86 billion to UIL Holdings, a Connecticut utility (see Phila. Gas Works Deal for $1.86B – Marcellus/Utica One of Keys). Eventually, after months and months and months, City Council President Darrell L. Clarke, acting like a corrupt Philly crime boss, refused to allow any hearings on the sale and killed the deal (see Philly City Council Kills the Phila. Gas Works $1.86B Deal). The crown jewel of PGW (see LNG Facility the Crown Jewel in Scuttled PGW Sale) is once again in the limelight. PGW announced yesterday they are holding a 12-day, non-binding “open season” for potential new customers of LNG sold by the plant with an eye to expanding the LNG plant. If they do expand it, they’ve said they will use Marcellus Shale gas to feed it…
Read More “Phila. Gas Works Launches 12-Day Open Season to Expand LNG”
Broome County | Energy Services | Industrywide Issues | New York | Pipelines | Regulation | Statewide NY | Williams

Pro-Drillers Out in Force at Constitution Pipeline Hearing in Binghamton
January 13, 2015January 14, 2021

Last night MDN editor Jim Willis “took one for the team” and attended a New York State Dept. of Environmental Conservation (DEC) hearing in Binghamton, NY on the application of the Constitution Pipeline. Even though the Federal Energy Regulatory Commission (FERC) has approved the Constitution, the state DEC must grant a 401 Water Quality Certificate that allows the Constitution to lay pipe through and under swamps, creeks and other bodies of water. According to one of the speakers last night, there are 270+ such bodies of water along the Constitution’s route. The session was lively, as they usually are. It was also predictable–well, mostly predictable. We can honestly say if you’ve been to one such hearing you’ve been to all of them (see Vicariously Attend FERC Scoping Hearing on Constitution Pipeline). The one big difference we detected at last night’s hearing is that landowners and labor union workers (in favor of the pipeline) far outnumbered those against the pipeline. Judging by the clapping, booing and other audience feedback, we’d peg the crowd of 250 or so at about 75% in favor of the pipeline, 25% against. What got things kicked off early was an address by a full-throated Communist (who was against the pipeline)…
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Air Quality | Health Impacts | Industrialization | Industrywide Issues | Research | Statewide WV | Wastewater | West Virginia

WVU Launches 5-Year Study of Local Frack Site for Air, Noise, H&S
January 13, 2015January 13, 2015

This is very cool. A West Virginia University professor, now interim chairman of WVU’s School of Public Health (Department of Occupational and Environmental Health Sciences), is going to perform some REAL science. Dr. Michael McCawley is someone we’ve highlighted before. He’s done some excellent research on air quality near drill sites (see WVU Prof Keeps Up Pressure on Improved Air Quality at Drill Sites). Dr. McCawley is launching the Marcellus Shale Energy and Environment Laboratory (MSEEL)–a project that will drill a test well and provide real-time air, noise, occupational safety and health monitoring over a five-year period. It is one of three such projects approved and funded (in part) by the U.S. Dept. of Energy…
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Anti-Drilling/Fossil Fuel | Energy Services | Exporting | Industrywide Issues | Kinder Morgan | Litigation | Pipelines | Regulation | Tennessee Gas Pipeline

Deerfield, MA Hoping Kinder Morgan Sues Them over Pipeline “Ban”
January 13, 2015January 13, 2015

Grasping at straws, a lawyer for Deerfield, Mass. continues to attempt an illegal “ban” on the Tennessee Gas Pipeline and its plans to come through that area (see MA Town Health Board Claims “Unlimited Power” to Stop TGP). The Deerfield Board of Health says most of the gas that will flow through the TGP will be exported. Their proof? They say there’s way more gas that would flow through the pipeline than could be used by New Englanders. And if a single molecule of that gas gets exported, shazam, exporting supports their right to ban it. Yeah, we don’t get quite get the logic either. But let’s back up a step. Deerfield and its zealous lawyer argue from a false premise–that current demand will remain static in New England. Their argument overlooks Obama’s war on coal and his earnest desire to mothball every single coal-generating electric plant on U.S. soil. There are a number of huge coal-generating (and nuclear) electric plants IN NEW ENGLAND that will shut down in the next few years. Would New Englanders welcome rolling blackouts from lack of electricity? Would they enjoy paying 100x the electric rates they pay now? Or might having more natural gas come to the area to convert those coal generating plants to natgas be the wise solution? Deerfield’s attempt to block the TGP overlooks the fact that demand will only increase, dramatically, in the coming years…
Read More “Deerfield, MA Hoping Kinder Morgan Sues Them over Pipeline “Ban””
Anti-Drilling/Fossil Fuel | Industrywide Issues | Litigation | Pennsylvania | Statewide PA

Troubling Win in PA Court Victory that Allows State Land Drilling
January 13, 2015January 13, 2015

Last week MDN told you about the crushing defeat of the Pennsylvania Environmental Defense Foundation (PEDF) in one of the their many lawsuits to stop drilling in PA (see PA Court Rules to Allow More Leasing/Drilling of State-Owned Land). What’s kind of funny about it is that the very case they sought to win–the Act 13 case that allows local towns to impose their own zoning on drilling–was used against the PEDF in the decision. Citing the “Robinson” case some 16 times, the Commonwealth Court told the PEDF that yes, the state can lease state land for drilling and yes, the General Assembly can decide how and where they want to spend the money such activity raises. Even though the outcome (for pro-drillers) was a positive, the way the court got there–using the Robinson decision–is troubling for the Marcellus industry…
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Pennsylvania | Statewide PA

Shale Gas News Radio – January 10, 2015 [Audio]
January 13, 2015January 13, 2015

Every Saturday the one-hour Shale Gas News show airs on Scranton, PA’s 94.3 FM “The Talker” radio station. The show is co-hosted by Kevin Lynn of Linde Corporation and Bill desRosiers from Cabot Oil & Gas. MDN brings you the latest program show notes and recordings for Shale Gas News each week (well worth your time to listen). Here’s the latest program, recorded on Saturday, Jan. 10…
Read More “Shale Gas News Radio – January 10, 2015 [Audio]”
Best of the Rest

Marcellus & Utica Shale Story Links: Tue, Jan 13, 2015
January 13, 2015January 13, 2015

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, Jan 13, 2015”