Marcellus Drilling News

Energy Services | Ethane | Exporting | Harrison County | Industrywide Issues | Kinder Morgan | Ohio | Pipelines

UTOPIA Open Season Begins Today – OH to MI NGL Pipeline
September 5, 2014September 5, 2014

Back in December MDN told you about Kinder Morgan’s new proposed new pipeline called the Utica To Ontario Pipeline Access, or UTOPIA (see UTOPIA is Coming! The UTOPIA Pipeline, that is…). The 240-mile natural gas liquids (NGL, specifically ethane and propane) pipeline will connect multiple fractionation facilities in Harrison County, OH, to Riga, MI. From Riga, the NGLs will hitch a ride via the KM Cochin Pipeline east to Windsor, Ontario, Canada where they will be delivered to NOVA Chemicals. The new $300 million, 10-inch pipeline from OH to MI is what is called UTOPIA. Yesterday KM announced a binding open season for UTOPIA…
Read More “UTOPIA Open Season Begins Today – OH to MI NGL Pipeline”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Litigation | Lycoming County | Pennsylvania | Regulation

Philly Inquirer Exposes PennFuture Lies in Lycoming County Case
September 5, 2014September 5, 2014

Yesterday MDN brought you the news that the virulently anti-drilling PennFuture was crowing about another scalp their lawyers have claimed in preventing fracking in Lycoming County, PA (see Bad PA Supreme Court Act 13 Decision Comes Home to Roost). We’ve often told you about the lying propaganda pumped out by PennFuture. Our words certainly don’t bother them. But we bet the words of none other than the Philadelphia Inquirer do bother them. The Inquirer is also out with a story about the challenge by PennFuture and a couple of ninny nanny “neighbors” (more than 2/3 of a mile away) who abused the recent Supreme Court decision to force the town to not allow the drilling it wants to allow. The Inquirer skewers PennFuture, pointing out the lies they tell…
Read More “Philly Inquirer Exposes PennFuture Lies in Lycoming County Case”
Industrywide Issues | Pennsylvania | Research | Statewide PA

MSC Launches Study on Water Sample Testing & Standards
September 5, 2014September 5, 2014

It’s relatively easy for so-called researchers with an agenda (and backed by Park Foundation money), to manufacture “proof” that shale drilling is evil and harms the environment. Duke University seems to be one hotbed of such so-called research (see Duke Study #2: Drilling Causes Methane Migration in Water Wells?). Cornell University is another Park Foundation funded source of so-called research (see Devastating Critique of New Ingraffea/Howarth Methane Study by EID). Much of that so-called research claims when shale drilling arrives, it causes methane to migrate into nearby water wells. That evil ole methane just can’t help itself! The highly respected trade organization, the Marcellus Shale Coalition (MSC), is tired of waiting for the EPA and others to develop standards that can be used when determining whether or not methane in water was caused by drilling–or far more likely–was there all along…
Read More “MSC Launches Study on Water Sample Testing & Standards”
Alternative Energy | Industrywide Issues

Shale Gas vs Wind and Solar – A Few Sobering Facts
September 5, 2014September 5, 2014

We’re certainly not anti-wind or anti-solar. We believe those technologies hold promise for the future. But they simply can’t compete with natural gas as the most economical and even the most environmentally friendly way of supplying electricity here and now. Every form of energy has its advantages and disadvantages. The fact (not opinion) that natural gas beats so-called renewables here and now is not just our opinion. We spotted an excellent column–from an Indian professor–that points out some sobering facts in the shale gas vs wind and solar debate…
Read More “Shale Gas vs Wind and Solar – A Few Sobering Facts”
Anti-Drilling/Fossil Fuel | Industrywide Issues

Soros Invests Big in Argentine Shale – No Comment from PAI
September 5, 2014September 5, 2014

Why is it that the nefarious anti-drilling Public Accountability Initiative (PAI), responsible for closing down a new shale institute at University at Buffalo (see Univ at Buffalo President Shuts Down (Censors) Shale Institute) and for making the University of Texas look foolish (see Soros-backed PAI Makes University of Texas Look Foolish), doesn’t take on their billionaire benefactor, George Soros himself? As we’ve previously written, Soros plays both sides of the fracking issue (see George Soros Plays Both Sides of Fracking Issue, for Profit). Word came out Wednesday that Soros is making yet another play to support fracking–this time in Argentia. And where is the PAI’s lampooning, castigating and otherwise demonizing of old George? Nowhere to be found. Crickets. Nothing. Why is that?…
Read More “Soros Invests Big in Argentine Shale – No Comment from PAI”
Anti-Drilling/Fossil Fuel | Earthquakes | Industrywide Issues | Mahoning County | Ohio | Statewide OH

Run for the Beach! The Hills are “Swarming” with Earthquakes!!
September 5, 2014September 5, 2014

Who knew that earthquakes can “swarm”–you know, like bees or locusts? That’s the absurd fearmongering nonsense being peddled by the nutters at Frackfree Mahoning Valley (Mahoning County, OH). They recently issued a press release (below) that says if wastewater injection wells are allowed to continue operating in Mahoning County, “swarms” of earthquakes will follow. Sounds almost biblical, doesn’t it?…
Read More “Run for the Beach! The Hills are “Swarming” with Earthquakes!!”
Best of the Rest

Marcellus & Utica Shale Story Links: Fri, Sep 5, 2014
September 5, 2014September 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, Sep 5, 2014”
Energy Companies | Pennsylvania | Shell | Tioga County (PA) | Utica Shale

Shell Drills 2 Successful Utica Wells in NEPA Marcellusland
September 4, 2014September 4, 2014

Shell has had an on-again, off-again, on-again love affair with North American shale (can anyone say “schizophrenia”?). In March, Shell’s new CEO Ben van Beurden said the company was not impressed with American shale plays and cutting back (see Cuts Coming to Shell’s Marcellus Shale Operations). Shell proceeded to sell 208,000 Marcellus Shale acres in a fire sale to Rex Energy, and a few days later picked up another 155,000 Marcellus Shale acres as part of a larger deal to unload other shale play acreage (see After Selling 208K Marcellus Acres, Shell “Buys” 155K More Acres!). Talk about schizophrenic! Now we get word from Shell that they’ve achieved something truly noteworthy: they’ve drilled six Utica wells in northeastern Pennsylvania! Yesterday Shell released initial production results for two of the six, and the numbers are truly impressive…
Read More “Shell Drills 2 Successful Utica Wells in NEPA Marcellusland”
Energy Companies | Industrywide Issues | Regulation | Statewide WV | Trans Energy | West Virginia

Trans Energy Fined $3M for Polluting WV Creeks & Swaps with Dirt
September 4, 2014September 4, 2014

Trans Energy, a smaller, “pure play” driller in the West Virginia Marcellus Shale, has just been slapped bigtime by the federal Environmental Protection Agency along with the WV Dept. of Environmental Protection. The EPA announced a deal with Trans Energy whereby the company will pay an astounding $3 million fine for “unauthorized discharge of dredge or fill material” into creeks and swamps in 15 different locations. Apparently Trans Energy didn’t get a “Mother May I?” permit when building roads and pushing dirt around at some of their Marcellus drilling sites and so will now pay a heavy fine. Oh, and speaking of the $3M fine–it will be split 50/50 between the EPA and the WVDEP. Party time at EPA HQ!…
Read More “Trans Energy Fined $3M for Polluting WV Creeks & Swaps with Dirt”
Eclipse Resources | Energy Companies | Harrison County | Monroe County | Ohio | Utica Shale

Eclipse Resources: Production Results for 7 OH Utica Wells
September 4, 2014September 4, 2014

Eclipse Resources, a small but rapidly growing independent driller focused on the Marcellus and Utica Shale region, released the initial production results for their two most recent well pads in the Utica Shale–one pad in Monroe County, the other in Harrison County. Eclipse drilled seven wells across the two pads, and if you combine them, the seven wells are producing (initial production or IP) 52.6 million cubic feet of natural gas per day, and 1,800 barrels of condensate per day. Very respectable numbers. Here’s the full details, along with a copy of an investor presentation (lots of great maps and charts) just released…
Read More “Eclipse Resources: Production Results for 7 OH Utica Wells”
Energy Services | Summit Midstream

Summit Midstream Floats 4M Units, Hopes to Raise $224M+
September 4, 2014September 4, 2014

Summit Midstream (pipeline company) is looking to raise another $224 million to use in their considerable midstream operation–including their increasing focus on the Marcellus/Utica. Yesterday the company issued a press release announcing they want to sell another 4 million “common units” (think shares of stock) in their master limited partnership (MLP) company. As of this morning, Summit unit shares were trading for $56.12 per share (or “unit”). At that price, if they sell all 4 million new shares, they’ll raise well over $200 million. As we’ve previously pointed out, Summit is making major moves in both the Marcellus and Utica Shale regions (see Summit Midstream 2Q14: Marcellus Rockets to #2 Operation). We expect some (much?) of the money they’ll raise in this newest offering will be used to either pay down previous deals, or perhaps be used for more expansion (acquisitions) in the northeast…
Read More “Summit Midstream Floats 4M Units, Hopes to Raise $224M+”
Energy Companies | Industrywide Issues | Inflection Energy | Litigation | Lycoming County | Pennsylvania | Regulation

Bad PA Supreme Court Act 13 Decision Comes Home to Roost
September 4, 2014September 25, 2019

The anti-drilling spin machine is in full cycle from the virulent anti-drilling group PennFuture. They’re hoping you won’t notice what we’re about to point out: the rank hypocrisy of a court decision last Friday. PennFuture is out with a press release that’s all peaches and cream, butterflies and unicorns that a (low) county court in Lycoming County has tossed out a drilling permit reviewed and allowed by Fairfield Township against Inflection Energy and landowners Donald and Eleanor Shaheen. PennFuture is billing it as the first test of the PA Supreme Court’s decision to allow local towns to create their own oil and gas zoning ordinances (see PA Supreme Court Rules Against State/Drillers in Act 13 Case). “But, wait a minute!” (you may say), “The Supreme Court said towns can do as they please, right?” Right. “The town decided the well pad was OK, so what’s the deal?” Good question…
Read More “Bad PA Supreme Court Act 13 Decision Comes Home to Roost”
Endeavour International | Energy Companies

Driller Endeavour Intl Decides to Skip Loan Interest Payments
September 4, 2014September 4, 2014

NOTE: MDN has revised this article (a few hours after releasing it). We orginally said that SM Energy had ended up in bankruptcy court following the aborted deal with Endeavour. That is not correct and we regret the error. SM has not (as far as we can tell) ever been close to bankruptcy. Thank you to an alert MDN reader who pointed out our mistake.

In July 2011 drilling company Endeavour International signed a deal with SM Energy to purchase 50,000 Marcellus Shale acres, three producing gas wells and a pipeline located in McKean and Potter counties in Pennsylvania for $110 million. Five months later Endeavour decided to abort the signed deal. The two sides finally settled 2 1/2 years of lawsuits earlier this year (see Endeavour & SM Energy Settle Lawsuit over PA Marcellus Properties). Why bring it up again? Because we noticed that on Tuesday Endeavour announced they would not make scheduled interest payments on their loans. According to the terms of the loans Endeavour has up to 30 days to pay. They’ve been discussing payback of the loans since June and have not yet come to new terms, so they (arbitrarily?) just decided they would withhold scheduled payments. Is there a pattern here?…
Read More “Driller Endeavour Intl Decides to Skip Loan Interest Payments”
Anti-Drilling/Fossil Fuel | Industrywide Issues | New York | Statewide NY

Who Knew? “Massive” Marcellus is Drilled in “Two Dozen States”
September 4, 2014September 4, 2014

Wow, the Marcellus must have grown quite a bit overnight when no one was looking. According to a reporter at Newsday (Long Island newspaper, sixth largest regional newspaper in the country), “More than two dozen states permit drilling in the massive Marcellus Shale deposit.” Last time we checked there are three states drilling in the Marcellus: Pennsylvania, West Virginia, and Ohio. Most of it happens in two states: PA and WV. When reporters are that sloppy, it makes you wonder if anything else in the article is actually true. In this case, it’s an article about the differences of opinion by gubernatorial candidates in NY on whether or not to allow fracking in the Empire State…
Read More “Who Knew? “Massive” Marcellus is Drilled in “Two Dozen States””
Anti-Drilling/Fossil Fuel | Industrywide Issues | North Carolina

The Behavioral Differences Between Anti- and Pro-Drillers
September 4, 2014September 4, 2014

Over the years of covering the debate on fracking and shale drilling, MDN editor Jim Willis has, on many occasions, sat in public meetings and personally witnessed those who oppose drilling (anti-drillers) behaving badly. We understand people having a different viewpoint–wrong viewpoints, but different. We respect that. However, those with an opposite viewpoint don’t reciprocate that respect. It’s not uncommon for anti-drillers to boo, clap, hiss and engage in all manner of theatrics and histrionics–especially if there are cameras and microphones in the room. No camera or microphone? They bring them along to record their own rude behavior! Seems it’s a source of pride for them. As we’ve pointed out many times before, many of these people are hippie retreads–either actual hippies from the 60s who seem to have found a new purpose for otherwise dull lives, or college-aged kids who somehow romanticize and view themselves as being cut from the same radical cloth. MDN is not the only place to notice anti-drillers behaving badly. Forbes magazine has too…
Read More “The Behavioral Differences Between Anti- and Pro-Drillers”
Energy Companies | EnerVest | EV Energy Partners | Hydraulic Fracturing | Industrywide Issues | Ohio | Stark County

EnerVest’s Grand Experiment: Fracking Clinton Sandstone in Ohio
September 3, 2014September 3, 2014

Long before the words “Marcellus” and “Utica” entered the public discourse and consciousness of Ohioans, there was the Clinton Sandstone. For years conventional drillers have been sinking wells in the Clinton, which is found 4,500 feet below the surface (the Marcellus and Utica Shale layers are deeper). The Clinton lies under 25 counties in eastern Ohio. Over the years, some 35,000 conventional (vertical) wells have tapped the Clinton Sandstone in Ohio. EnerVest, one of the largest acreage holders in the Utica Shale (and in the Clinton Sandstone), has embarked on a great experiment. What if you turned a Clinton Sandstone well horizontal, like a Utica or Marcellus well? Would it work? Could you get more gas out of the sandstone by fracking it like shale? EnerVest has drilled seven horizontal wells so far, with a permit to drill another and a request to drill a ninth. Here’s the details, along with the differences between a Clinton horizontal well and a Utica horizontal well…
Read More “EnerVest’s Grand Experiment: Fracking Clinton Sandstone in Ohio”