Marcellus Drilling News

Economic Impact | Energy Services | Ethane | Industrywide Issues | NGLs | Pennsylvania | Pipelines | Processing Plants | Statewide PA | Sunoco Logistics

Permit Filing Reveals NGL Mix Expected from Mariner East Pipelines
November 20, 2014November 20, 2014

Earlier this month MDN told you that Sunoco Logistics has decided to move forward–if they get regulatory approval–with building the Mariner East 2 natural gas liquids (NGL) pipeline which will stretch from eastern Ohio all the way to the Philadelphia area (see Sunoco Logistics Will Build $2.5B Mariner East 2 Pipeline). The pipeline and associated upgrades will cost Sunoco $2.5 billion. Some of the “associated upgrades” will be to the Marcus Hook refinery near Philly. A Reuters investigation, released yesterday, unearthed new details about Sunoco’s plans for the Marcus Hook refinery. Reuters got a hold of permit applications Sunoco filed with the state Dept. of Environmental Protection (DEP) in September which discloses the capacities and types of storage tanks Sunoco plans to build to hold all those incoming NGLs, which tells us what they expect to receive via the Mariner East I & II pipelines once both are operational…
Read More “Permit Filing Reveals NGL Mix Expected from Mariner East Pipelines”
Industrywide Issues | Landfills | Ohio | Regulation | Statewide OH

OH Regulators Issue Guidance to Landfills on Accepting Frack Waste
November 20, 2014November 20, 2014

Three days ago the Ohio EPA, the Ohio Dept. of Natural Resources’ (ODNR) Division of Oil and Gas Resources Management, and the Ohio Department of Health issued a joint 4-page “guidance letter” to landfills in Ohio that clarifies how and when they can dispose liquid and solid waste from oil and gas drilling (full copy embedded below). According to our friends at the Babst Calland law firm, “The letter addresses what waste is defined as solid waste that must be disposed in landfills, classification of certain drill cuttings as not constituting regulated solid waste, and substances classified as TENORM that must be analyzed for radioactivity prior to landfill disposal.” Ohio landfill operators and Ohio drillers will need to pay attention to these new guidelines, some of which recently went into effect…
Read More “OH Regulators Issue Guidance to Landfills on Accepting Frack Waste”
Industrywide Issues | Regulation | Statewide WV | West Virginia

WV Lawmaker Threatens Marcellus Industry with New Safety Laws
November 20, 2014November 20, 2014

The Marcellus and Utica Shale industry is laser-focused on the safety of its workers. MDN editor Jim Willis has witnessed it first-hand when touring active rigs, pipeline sites, compressor stations and even completed well sites. State and federal regulations are strictly followed. Even though Marcellus Shale workers in West Virginia are required to take either an 8-hour or 30-hour OSHA safety training course, depending on the job, WV lawmakers are still concerned that the industry is not “regulated enough” when it comes to safety. Those same lawmakers–namely Del. Randy Smith from Preston County, WV–are threatening to slap new safety laws on drillers in the Mountain State…
Read More “WV Lawmaker Threatens Marcellus Industry with New Safety Laws”
Electrical Generation | Industrywide Issues | Luzerne County | Pennsylvania

Moxie’s NEPA Marcellus-Powered Electric Plant Gets 1st Approval
November 20, 2014November 20, 2014

MDN previously told you about a project under way by Moxie Energy to build an electric generation plant fired by Marcellus Shale gas in Salem Township (Luzerne County), PA. If the project goes forward, it would be Moxie’s third such power plant project in northeast Pennsylvania (see Moxie Energy in Hunt for Third Marcellus-Powered Electric Plant?). The first two such projects begun by Moxie were both later sold to Panda Power–before being built. Moxie gets all of the permits and gets ready to begin construction, then turns around and sells the project to others–at least that’s what they’ve now done twice. Some of the neighbors living close to where the plant will be built, near Wilkes-Barre, have complained and pushed back (see Balancing Act for New Natgas-Fired Electric Plant in NEPA). However, Salem Township supervisors voted yesterday to approve the project, the first and perhaps most important step on the way to putting shovel to ground…
Read More “Moxie’s NEPA Marcellus-Powered Electric Plant Gets 1st Approval”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Landfills | Litigation | Ohio | Regulation | Statewide OH | Wastewater

Another Day, Another Lawsuit from Food & Water Watch
November 20, 2014November 20, 2014

The anti-drilling Fresh Water Accountability Project (FWAP)–based in Ohio–along with the odious and litigious (and misnamed) Food & Water Watch have once again, sued. Surprise! This time they’ve sued OH Gov. John Kasich along with the Ohio Department of Natural Resources (ODNR) for what they claim are the “illegal approval of at least 23 fracking waste handling, storage, processing and recycling facilities to operate.” Lea Harper, head of the so-called FWAP, has been involved in other anti-drilling lawsuits, including one against the Muskingum Watershed Conservancy District. FWW must have to employ a librarian to keep track of all their anti-drilling lawsuits. Here’s the latest bald-faced lies from these two litigious organizations:
Read More “Another Day, Another Lawsuit from Food & Water Watch”
Best of the Rest

Marcellus & Utica Shale Story Links: Thu, Nov 20, 2014
November 20, 2014November 20, 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: Thu, Nov 20, 2014”
Braskem | Economic Impact | Energy Services | Ethane | Industrywide Issues | Odebrecht | Processing Plants | Statewide WV | West Virginia | Wood County

WV Trip to Brazil Reaffirms Cracker Plant: “Comfort Level Strong”
November 19, 2014November 19, 2014

Last week West Virginia Gov. Earl Ray Tomblin led a trade delegation on a junket to Brazil to talk with officials from Odebrecht and Braskem about the $3 billion proposed ethane cracker plant/petrochemical complex the companies are planning for Parkersburg, WV (see WV Gov. Tomblin Leads Trade Mission to Brazil re Cracker Plant). Accompanying Tomblin on the trip were his wife, Secretary of Commerce Keith Burdette and several others. Fresh back from the trip both Tomblin and Burdette have very encouraging comments. Burdette in particular effused about the ASCENT cracker plant project, saying: “Our comfort level [that the project will happen] is very strong.” Burdette also said (perhaps in response to criticisms about an expensive taxpayer-funded trip to Brazil) that it was important for WV officials to spend time in their offices–as a courtesy and to show commitment to a project that the company is spending beaucoup bucks on in WV…
Read More “WV Trip to Brazil Reaffirms Cracker Plant: “Comfort Level Strong””
Anti-Drilling/Fossil Fuel | Crestwood Midstream | Crime | Energy Services | Industrywide Issues | New York | Schuyler County

Progress with Proposed Seneca Lake Propane Storage Facility
November 19, 2014November 19, 2014

Some positive movement (finally) for the proposed LPG (liquefied petroleum gas, or propane) storage facility proposed by Crestwood Midstream for a depleted salt cavern along Seneca Lake, near Watkins Glen, NY. We’ve been covering this story for years (see our articles on Inergy and Crestwood). In 2009 Inergy, which has since been sold to Crestwood, applied for a permit to store LPG in the depleted salt caverns on Seneca Lake. Since then, the state Dept. of Environmental Conservation, under a series of Democrat governors, has intentionally delayed issuing a permit for the facility. The Federal Energy Regulatory Commission (FERC) gave their blessing for the facility last month, and early last week the DEC finally issued draft permit conditions–the next step in the process…
Read More “Progress with Proposed Seneca Lake Propane Storage Facility”
Energy Services | Industrywide Issues | PennEast Pipeline | Pennsylvania | Pipelines | Regulation | Statewide PA

DRBC Tells PennEast They Need DRBC (Not Just FERC) Approval
November 19, 2014November 19, 2014

Looks like all those phone calls and emails and letters and complaining by THE Delaware Riverkeeper, Maya van Rossum, about the PennEast Pipeline that will carry cheap, abundant, clean-burning Marcellus Shale gas from northeast PA to NJ, have had their intended effect. The Delaware River Basin Commission, under the new leadership of Steve Tambini, has notified PennEast that they will need to get the DRBC kiss of approval before they can build the pipeline through the Delaware River Basin area. Let’s hope it’s not the (typical) DRBC kiss of death…
Read More “DRBC Tells PennEast They Need DRBC (Not Just FERC) Approval”
Energy Companies | Energy Corporation of America | Kanawha County | West Virginia

ECA’s New Regional HQ in Charleston: More WV Drilling on the Way?
November 19, 2014November 19, 2014

Energy Corporation of America (ECA) is a privately owned company founded in 1963 with corporate headquarters in Denver, CO. The company owns and operates approximately 4,600 (mostly vertical) wells, 5,000 miles of pipeline, and leases more than 1 million acres in North America alone. Most of ECA’s leased acreage is in the northeast, so it came as no surprise when they announced last year that they would build a new regional HQ that will house more than one-third of their employees (see ECA Breaks Ground on WV Regional HQ, Donates $600K to Clay Center). The brand spanking new regional HQ building in Charleston, WV is done (cost $10 million to build) and some 115 employees are now moved into a 60,000 square foot building with room for up to 200 employees. But MDN has discovered a head-scratcher…
Read More “ECA’s New Regional HQ in Charleston: More WV Drilling on the Way?”
Energy Services | EnLink Midstream

EnLink Midstream Job Promotion Signals Rapid Growth Ahead
November 19, 2014November 19, 2014

Personnel changes at upstream and midstream companies aren’t usually something we cover here at MDN. But there are times when personnel changes signal something important. This is one of those times. EnLink Midstream is the renamed Crosstex Energy that was merged with Devon Energy’s midstream division– a merger that happened in March 2014 (see Time to Congratulate Devon & Crosstex on the Birth of EnLink). Eight months later and the company, with a large presence in the Marcellus/Utica, is on a tear. They are raising money and buying assets and expanding rapidly. One of the key people in the merger and subsequent growth is Benjamin D. Lamb, who joined Crosstex in 2012. Prior to that Lamb worked for an investment bank. Lamb has just been promoted to senior vice president but retains his role in leading the company’s mergers, acquisitions and financing transactions. In other words, it’s his job to find the money and buy smaller fish. EnLink’s CEO wants to (gasp) double the size of the company in the next three years, so Lamb has his work cut out for him…
Read More “EnLink Midstream Job Promotion Signals Rapid Growth Ahead”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Taxation

Green Scissors Proposes New Energy Taxes Under Guise of Spending Cuts
November 19, 2014November 19, 2014

A completely bogus anti-drilling campaign calling itself “Green Scissors” attempts to pass off the latest anti-fossil fuel efforts by Friends of the Earth and two other unheard of, far left groups (Taxpayers for Common Sense and R Street) as cutting wasteful government spending. It is NOTHING of the sort. Their so-called interactive database identifies “more than $259 billion in environmentally-harmful government waste” that they hope Republicans in Congress will adopt. What it really is, is their recommendations for eliminating tax deductions that encourage energy companies to drill for oil and gas. Deductions like instead of the ability to write off an expense up front, in the year when the expense occurs–Green Scissors wants to force energy companies to amortize and depreciate the expense over the life of the asset (decades). In other words, raise taxes on energy companies. In the minds of Green Scissors–ALL MONEY belongs to the government and the government allows you to keep some of it–rather than the other way around…
Read More “Green Scissors Proposes New Energy Taxes Under Guise of Spending Cuts”
Industrywide Issues | McKean County | Pennsylvania | Statewide PA | Taxation

PA Severance Tax Will End Worthy Projects in Drilling Communities
November 19, 2014November 19, 2014

The McKean County, PA Board of Commissioners have just approved spending $42,750 to convert space over the Goodwill store in Kane, PA into four one-bedroom apartments to be used to house “transition age youth”–poor kids with no place to live. The money comes from a housing fund established by (yep) the Marcellus Shale impact fee. If PA’s Republican legislature caves and adopts newly-elected Gov. Tom Wolf’s nutball idea of a 5% severance tax, the impact fee will be gone and projects like this will disappear along with it. Which is why communities impacted by Marcellus drilling are universally opposed to changing from an impact fee to a severance tax–because they will get shafted. Right now, 60% of the fee stays local, for projects like this one. With a severance tax, all money goes to Harrisburg and slips through the fingers of greedy politicians–into the back pocket of teacher’s unions, mostly…
Read More “PA Severance Tax Will End Worthy Projects in Drilling Communities”
Dominion Energy | Education | Energy Services | Industrywide Issues | Ohio | Pennsylvania | Statewide OH | Statewide PA | Statewide VA | Statewide WV | Virginia | West Virginia

Dominion Awards $1M in Grants to Colleges in Marcellus/Utica
November 19, 2014November 19, 2014

Each year Dominion, a major midstream and utility company with operations throughout the northeast, donates money in education grants via their Dominion Foundation to schools ranging from pre-K through college in the states where Dominion does business: Ohio, Connecticut, Maryland, North Carolina, Pennsylvania, Virginia, West Virginia, and the District of Columbia. Dominion, you may recall, is the company building the East Coast’s first LNG export facility, investing $3.4-$3.8 billion (see Dominion Breaks Ground on Cove Point, MD LNG Export Facility). They also want to build the 550-mile, $5 billion Atlantic Coast Pipeline from WV to NC (see Dominion Asks FERC to Start Environmental Review of SE Pipeline). The company pumps a lot of money back into local communities where they operate with their investments. They also pump a good bit back via charitable contributions, including $1 million for colleges in the Marcellus/Utica region in 2014…
Read More “Dominion Awards $1M in Grants to Colleges in Marcellus/Utica”
Best of the Rest

Marcellus & Utica Shale Story Links: Wed, Nov 19, 2014
November 19, 2014November 19, 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: Wed, Nov 19, 2014”
Baker Hughes | Energy Services | Halliburton | Industrywide Issues | M&A

Shotgun Wedding: Halliburton Forces Baker Hughes to Sell
November 18, 2014November 18, 2014

That was fast. Last week MDN told you the scuttlebutt that the second largest oilfield services company in the U.S., Halliburton, was “in talks” to buy the third largest oilfield services company in the U.S., Baker Hughes (see Big News: Halliburton in Talks to Buy Baker Hughes). The “talks” advanced quickly. Yesterday the two companies announced they will tie the knot in something of a shotgun wedding (which we explain below). Halliburton is paying a dowry of $34.6 BILLION in stock and cash to buy out Baker Hughes, lock, stock and barrel…
Read More “Shotgun Wedding: Halliburton Forces Baker Hughes to Sell”