Marcellus Drilling News

Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Tyler County | Utica Shale | West Virginia

Magnum Hunter Takes the Prize: Top Producing Utica Well
September 26, 2014September 26, 2014

Magnum Hunter has announced they’ve drilled the most southern (geographically) Utica Shale well ever drilled. The surprise is that it’s drilled in Tyler County, WV. The further surprise is that it’s one of the most productive Utica or Marcellus well ever drilled. Is it THE most productive well ever drilled? We don’t know for certain, but we think so. The announcement (below) says Magnum Hunter brought the Stewart Winland 1300U online last weekend and that so far, the “current peak rate” of production has been 46.5 million cubic feet per day (Mmcf/d). Truly astonishing…
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Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Energy Services | Eureka Midstream | Industrywide Issues | Ohio | Pipelines | Statewide OH | Statewide WV | Triad Hunter | West Virginia

Magnum Hunter’s Pipeline System Boosts Volumes in OH/WV
September 26, 2014September 26, 2014

A second announcement from Magnum Hunter over the past two days is not nearly as important as the first–but interesting nonetheless. Magnum Hunter announced yesterday that Eureka Hunter–Magnum’s pipeline gathering subsidiary–has bumped up the volume of gas flowing through the system to an average 316,500 million Btus per day, or roughly 307 million cubic feet (Mmcf) per day. Fully one-third of the gas flowing through the system, which is located in West Virginia and Ohio, comes from another Magnum Hunter subsidiary–Triad Hunter. Lot’s of “Hunters” out there. 😉 Here’s the announcement of the increasing volumes flowing through Eureka Hunter’s pipelines these days…
Read More “Magnum Hunter’s Pipeline System Boosts Volumes in OH/WV”
Meetings

Shale Insight News – Roundup of Who Said What
September 26, 2014September 26, 2014

MDN Editor Jim Willis once again was privileged to attend Shale Insight–THE industry event for the shale industry in the northeast. This year was the first time Shale Insight was held in Pittsburgh. For the first three years of its existence Shale Insight has been held in Philadelphia. Starting this year the event will rotate between Pittsburgh and Philly every other year. This year’s event saw such luminary speakers as Stephen Moore, chief economist from the Heritage Foundation, Dana Perino, former White House press secretary and current host of Fox’s The Five, Randy Cleveland, president of XTO Energy, David Porges, CEO of EQT, Frank Semple, CEO of MarkWest Energy, Bill Richardson, former energy secretary at the DOE and former governor of New Mexico, Tom Ridge, former governor of PA and former secretary of Homeland Security, and a rousing “fire ’em up” address by Sean Hannity, national radio talk show host and Fox News host. The conference ended on a high note with an address by PA Gov. Tom Corbett–in the re-election fight of his life. Corbett is strongly pro-gas, unlike his opponent Tom Wolf. The conference also ran lots of panels on interesting topics like the environment, Act 13 and its implications, drilling and completions–the list goes on. Jim will share his notes in the coming days. For now, below is a roundup of excellent coverage from others who were there…
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Industrywide Issues | Pennsylvania | Statewide PA | Taxation

Former Gov. Tom Ridge Predicts PA Will Get Severance Tax
September 26, 2014September 26, 2014

Although we have a run-down on the news coming from the Shale Insight conference in today’s lineup (see Shale Insight News – Roundup of Who Said What), there is one bit of news that to us, towers above the rest. Former PA Gov. Tom Ridge was always a bit squishy back in the day–not truly a conservative. But an OK guy and an able governor. He’s a very important figure in Pennsylvania politics, even today. Ridge was, as you may recall, the very first Secretary of Homeland Security under George W. Bush following the 9/11 Islamic terrorist attack on this country. At yesterday’s closing session, Ridge said he believes Pennsylvania will adopt a severance tax, which is a very bad sign in our opinion…
Read More “Former Gov. Tom Ridge Predicts PA Will Get Severance Tax”
Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Public Opinion | Statewide PA

MSC Launches Major PR Campaign to Change Public View of Fracking
September 26, 2014September 26, 2014

Channeling in our inner Martha Stewart: “Fracking is a good thing.” One of the announcements made at this year’s Shale Insight event was from the host Marcellus Shale Coalition. They have just launched a major public relations campaign to change the word “fracking” from having negative connotations to having positive vibes. The campaign is called Fracking: Rock Solid for PA and sports three commercials that will be aired in media markets across the state. The advertisements will encourage people to type in the web address rocksolidfacts.com, a vanity URL that then forwards them to the MSC’s United Shale Associations website at this address: //unitedshaleadvocates.com/rocksolidfacts/. On that page visitors can watch a 3-minute video that shares the real facts about fracking in Pennsylvania…
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Energy Services | Industrywide Issues | MarkWest Energy | Pennsylvania | Regulation | Washington County

Fines Total $151K for 2 Incidents at MarkWest Chartiers, PA Plant
September 26, 2014September 26, 2014

MarkWest continues to feel the effects of problems they’ve experienced at the company’s Houston Gas Processing Plant in Chartiers Township (Washington County), PA. MarkWest had expanded the plant–doubling its operations. When new equipment went online in July, things didn’t go as planned and there was emergency flaring–burning of gas–at the plant (see Smoke at MarkWest Chartiers, PA Gas Processing Plant). It wasn’t long before the PA Dept. of Environmental Protection (DEP) started handing out violation notices (see MarkWest Served Violation Notice for Chartiers Processing Plant). The company had a previous $71,000 fine for improper flaring at the plant stemming from incidents in April of this year. With the July incident, another $80,000 fine was assessed, totaling $151,000 in fines for the plant in the past six months…
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Energy Companies | Energy Services | Industrywide Issues | Lycoming County | NFG Midstream | Pennsylvania | Pipelines | Regulation

PA DEP Fines NFG Midstream $250K for Pipeline Violations
September 26, 2014September 26, 2014

The PA Dept. of Environmental Protection (DEP) has just slapped NFG Midstream Trout Run LLC $250,000 for pipeline violations in Lycoming County, PA. NFG Midstream is a subsidiary company of National Fuel Group–the big utility and driller (via their subsidiary Seneca Resources) headquartered in Buffalo, NY. The fine is for “multiple violations” of the Clean Streams Law and DEP regulations during construction of the Trout Run Gathering System pipeline in five Lycoming County municipalities during 2011 and 2012. The DEP documented “continuing violations at multiple locations” over a 7-month period. NFG has already paid the fine…
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Energy Companies | Vantage Energy

Vantage Energy Postpones IPO Citing Unfavorable Market Conditions
September 26, 2014September 26, 2014

Have shale-related initial public offerings (IPOs) lost some of their luster? Early this year Rice Energy, focused on the Marcellus and Utica Shale region, launched an IPO that brought in $924 million (see Rice Energy IPO Soars, Brings in $84M More Than Expected). Eclipse Resources, another driller focused on the northeast, launched an IPO in June and raised $818 million (see the Bloomberg story Eclipse Resources Falls in Debut After IPO Priced at Low End). In July Vantage Energy, a Colorado company with major operations in the Marcellus, announced they would launch an IPO seeking $400. Then in September the number was revised up–the company felt like $601 million would be the goal of their IPO (see Vantage Energy IPO Target Goes from $400M to $601M). On Wednesday, Vantage announced they’re postponing the IPO, citing “unfavorable equity market conditions”…
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Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Regulation | Statewide VA | Virginia

Sierra Clubbers Call on Virginia to Not Frack Until More “Study”
September 26, 2014September 26, 2014

Must be anti-drillers all use the same playbook. Maybe they all read Saul Alinsky’s book “Rules for Radicals” (Saul Alinksy is the same guy who heavily influenced Barack Obama and Hillary Clinton). The anti-drilling playbook goes like this: When you think fracking may actually, finally start to happen, call for more studies to ensure it’s “safe.” New York has done this to get effect–so other locales think they can borrow the same tactic. The corollary is: If drilling is already happening, say it’s unsafe and should be suspended pending further studies. Study study study. That’s the mantra. Even though there have already been plenty of studies and mountains of data and proof that fracking is safe. All you have to do, if you’re a radical environmental group, is issue a press release and call for a study to plant the seed that the industry is hiding something. So it was no surprise to learn that the Virginia Sierra Club wants (surprise!) a study before shale drilling is allowed in the Old Dominion…
Read More “Sierra Clubbers Call on Virginia to Not Frack Until More “Study””
Education | Industrywide Issues | Pennsylvania | Research | Statewide PA | Supply Chain

GE Donates $10M to Fund New Penn State Shale Gas Center
September 26, 2014September 26, 2014

Earlier this week Penn State announced they are receiving a grant/investment from GE to the tune of $10 million to study and improve natural gas supply chains and systems. Penn State’s Center for Collaborative Research on Intelligent Natural Gas Supply Systems at Penn State (CCRINGSS) will, according to the announcement, have “researchers and students from many disciplines in collaborative work with various industry stakeholders. The center will seek to advance efficiency and environmental sustainability both through technological innovations and improved supply chain management.” The money GE is giving to Penn State for the CCRINGSS will be used for research projects, buying equipment and funding undergraduate, graduate and postdoctoral fellowships. More from the announcement…
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Best of the Rest

Marcellus & Utica Shale Story Links: Fri, Sep 26, 2014
September 26, 2014September 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: Fri, Sep 26, 2014”
About MDN

MDN @ Shale Insight
September 25, 2014

$frack on!$ MDN editor Jim Willis is attending Shale Insight this week. Today (Thursday) is the last day. Sadly, that means no stories posted today. But have no fear, MDN will be back tomorrow (Friday).

A teaser: Jim conducted an interview with PA Sec. of the Dept. of Environmental Protection (DEP) Chris Abruzzo on Wednesday. It was a wide-ranging interview in which Jim asked the Secretary about the recent Range Resources fine of $4.15 million, the list of 243 cases of “water contamination” from fracking in PA, PA Attorney General Eugene DePasquale’s report knocking the DEP, and the challenges and delightful surprises he’s experienced since taking over the DEP in April of 2013. Look for that interview either Friday or Monday.

A special thank-you: Last night Jim helped host the NGI (Natural Gas Intelligence) Riverboat Cruise. We had a TERRIFIC time with NGI and MDN friends aboard. Thanks to everyone who turned up. It was a great pleasure getting to know you better. Congrats to those who won the NGI raffle of a Kindle Fire, Nexus tablet and Apple iPad Mini.

Until tomorrow, frack on!
Industrywide Issues | Pennsylvania | Research | Statewide PA | Wastewater

Stanford Study Tells Us What We Knew 3 Years Ago About Wastewater
September 24, 2014September 24, 2014

A new research study from Stanford University titled “Enhanced Formation of Disinfection By-Products in Shale Gas Wastewater-Impacted Drinking Water Supplies” proves what we already knew more than three years ago: When you send frack wastewater untreated, or lightly treated, to a municipal sewage treatment plant–the plant can’t get the residual water clean enough to not cause problems down river. Back in 2011, then-PA DEP Sec. Michael Krancer ended the practice of municipal treatment plants without special equipment from processing frack wastewater (see PA DEP, Marcellus Shale Coalition Admit Drilling Wastewater Likely Contaminating Drinking Water). Not long after it was shown that bromide levels–one of the hazards of treating frack wastewater with chlorine–had fallen after the ban (see Marcellus Wastewater Ban Leads to Lower Bromide in PA Rivers). Here we are three years later and a new study says the same thing…
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Cardinal Gas Services | Energy Companies | Energy Services | EV Energy Partners | Industrywide Issues | M&A | Ohio | Pipelines | Statewide OH | Total | Utica Shale

Total, EVEP Sell Interest in Cardinal Midstream to S Koreans for $612M
September 24, 2014September 24, 2014

In August MDN told you that a pair of Korean companies were sniffing around Cardinal Midstream Services–looking to buy up to a 34% stake in the company (see Cardinal Gas Courts S Koreans to Invest in Utica JV). Cardinal is a midstream operator (pipelines and processing plants) in the Utica Shale. The Koreans are sniffing no more. Yesterday, one of the investor/owners of Cardinal, French oil giant Total, announced they’re selling their 25% stake in the company to two Korean companies…
Read More “Total, EVEP Sell Interest in Cardinal Midstream to S Koreans for $612M”
Industrywide Issues | Pipelines | Regulation | Research

GAO Report Recommends Feds Start Regulating Gathering Pipelines
September 24, 2014September 24, 2014

Instead of “planes, trains and automobiles” it was “trains, trucks, barges and pipelines” in a report just released by the U.S. Government Accountability Office (GAO). The report, prepared for Congress and delivered to them in August but only publicly released two days ago, is titled “OIL AND GAS TRANSPORTATION: Department of Transportation Is Taking Actions to Address Rail Safety, but Additional Actions Are Needed to Improve Pipeline Safety” (full copy below). In the report, the GAO, along with the Pipeline and Hazardous Materials Safety Administration (PHMSA), recommends the feds get involved with regulating gathering pipelines–the low pressure pipelines that connect directly to the well. Those pipelines have historically been regulated by the states themselves…
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Industrywide Issues | Ohio | Regulation | Statewide OH

Final Comments Due on Ohio’s Revised Well Pad Construction Rules
September 24, 2014September 24, 2014

The Ohio Dept. of Natural Resources (ODNR) recently posted revisions to their well pad construction rules. The revised rules (full copy below) now go through a comment period that ends on October 6th. This is a process that started back in February…
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