Marcellus Drilling News

Coterra Energy (Cabot O&G) | Energy Companies | Utica Shale | West Virginia | Wood County

Cabot’s Wood County, WV Utica Well – Vertical or Horizontal Miss?
November 17, 2014November 17, 2014

Several years ago MDN editor Jim Willis took a tour of several Cabot Oil & Gas well sites in Susquehanna County, PA. One of the sites was a completed well pad with four producing wells, located not far from Carter Road in Dimock (yes the infamous Carter Road memorialized in Gasland). As we stood on the pad, a pad not visible a few hundred feet from the road, Jim’s tour guide (Bill desRosiers) made this statement: “Cabot has over 3,000 vertical gas wells in West Virginia. You see these four horizontal wells? These four wells produce more natural gas in one day than all 3,000 of those vertical wells in West Virginia.” Jim’s jaw hit the ground. He immediately thought (still thinks): That is the power and miracle of horizontal hydraulic fracturing! So it sparked our interest when we spotted a story from Wood County, WV about a well drilled by Cabot this past August in WV–a well that Cabot immediately plugged. It was a “miss” for Cabot. Our questions: Was it a vertical-only well? Or was it intended to be a horizontal Utica well?…
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Centre County | Energy Companies | Industrywide Issues | Pennsylvania | Shell | Statewide PA | Taxation

New PA Senate Leader Says Severance Tax Could Kill Cracker Plant
November 17, 2014November 17, 2014

It’s looking better and better that Pennsylvania Republicans will not cave to pressure to enact a Marcellus-killing severance tax proposed by Democrat Governor-elect Tom Wolf. Last week Republicans booted RINO Dominic Pileggi (Philly area) from his leadership post and replaced him with Sen. Jake Corman from Centre County as the new majority leader. Corman says if a severance tax is enacted, it may well kill the prospects for Shell’s ethane cracker plant and Corman wants to ensure that plant gets built…
Read More “New PA Senate Leader Says Severance Tax Could Kill Cracker Plant”
Energy Services | Industrywide Issues | PennEast Pipeline | Pennsylvania | Pipelines | Statewide PA | Taxation

PA State Law Prevents PennEast Pipeline from Paying Property Tax
November 17, 2014November 17, 2014

If you live in New Jersey and you live in a county or township where the PennEast Pipeline will be built, you’re in for a treat: You get a shot of extra revenue every year for the town/county budget in the form of real estate taxes (often referred to as property taxes). PennEast figures Hunterdon County, NJ will see something like $1 million per year in tax revenue from the pipeline. But just over the border in Pennsylvania it’s a different story. In PA natural gas pipelines are not considered “real estate” but instead equipment, and therefore pipelines are not taxed…
Read More “PA State Law Prevents PennEast Pipeline from Paying Property Tax”
Chemung County | Dominion Energy | Energy Services | Industrywide Issues | Madison County | Montgomery County | New York | Pipelines

Dominion’s NY Compressor Plants to Move More Marcellus Gas
November 17, 2014November 17, 2014

In June MDN told you about the Dominion New Market Project–a project that will build two new compressor plants and upgrade one other compressor station in upstate New York to help flow more abundant, cheap and clean-burning Marcellus Shale gas from Pennsylvania (and beyond) into the northeast (see Dominion Asks FERC for New Compressors in Upstate NY, WV). It is projected to cost $159 million and provide 112,000 dekatherms per day (Dth/d) of extra natural gas capacity along ~200 miles of existing Dominion pipeline across upstate New York. The pipeline runs through the Horseheads, Ithaca, Syracuse and Albany areas. We have some details about that project, including details about the proposed compressor station in Chemung County, NY…
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Energy Companies | Industrywide Issues | Pennsylvania | Rice Energy | Trucking | Washington County

Marcellus Industry Lends a Hand with Nabbing Trucking Violations
November 17, 2014November 17, 2014

There’s no getting around the fact that when drilling comes to an area, so too does a LOT of truck traffic. Anyone who lives in an area with active drilling can attest to the headaches of following a water truck up a hill going half the speed limit. Because the industry is high profile, those who operate truck fleets (and the energy companies who hire them) typically enforce strict rules for drivers. They also maintain their fleets in tip-top shape to ensure there are no safety violations. Case in point: Washington County, PA…
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Industrywide Issues | Litigation | Ohio | Statewide OH

Another OH DMA Case Decided in Favor of Landowners
November 17, 2014November 17, 2014

For some time now MDN has been following court challenges to Ohio’s Dormant Mineral Act (DMA). The DMA is really two pieces of legislation: One which went into effect in 1989, the other which sought to clarify the 1989 law that went into effect in 2006 (see Video: OH Lawyers Explain Dormant Minerals Act & Impact on Utica). The Ohio Supreme Court has heard a case on the DMA but has still not ruled. However, other cases on the periphery of the DMA have been decided (see OH 7th Circuit Court of Appeals Decision on Dormant Minerals Act). Another such case, Wendt v. Dickerson, was decided a few weeks ago–a case which found in favor of landowners who want to reclaim mineral rights in certain circumstances…
Read More “Another OH DMA Case Decided in Favor of Landowners”
Industrywide Issues | Lackawanna County | Landfills | Pennsylvania

Scranton Newspaper Takes Another Swipe at Local Landfill/Cuttings
November 17, 2014November 17, 2014

This past summer MDN brought you the story of Keystone Sanitary Landfill and their request to expand the landfill skyward (see DEP Delays Scranton Landfill Expansion; Requires Study). Keystone Landfill, on the outskirts of Scranton, PA, is the state’s third busiest landfill. They accept a lot of Marcellus drill cuttings (leftover rock and dirt). A consultant for Keystone, Albert Magnotta, recently told Scranton’s ~~anti-drilling rag~~ the Times-Tribune that residents from the Scranton/Wilkes-Barre area will run out of places to dump their trash in five years if Keystone is not allowed to expand. So the Times-Tribune found another landfill not too far away, Alliance Sanitary Landfill in Taylor, PA–owned by the country’s largest garbage collection/dumping service (Waste Management)–to dispute Keystone’s claim. The Times-Tribune would love nothing better than to close down Keystone (a privately-owned local company) and their ability to accept drill cuttings, by assisting a nationally-owned competitor…
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Energy Services | Pennsylvania | Statewide PA | UIL Holdings

PDN: City Council Ruined the Promise of Energy Hub in Philly
November 17, 2014November 17, 2014

Can Philadelphia ever be THE energy of hub of the northeast? According to an editorial in the Philadelphia Daily News, City Council has ruined that possibility by scuttling the deal to sell Philadelphia Gas Works (PGW) to UIL Holdings (see Phila. City Council’s 6-Hour Hearing on PGW Sale, UIL Appearance). According to the editorial writers, City Council is focusing on retaining 1,600 (and shrinking) public sector union jobs at PGW instead of allowing the sale of PGW which potentially could lead to Philly becoming THE northeast energy hub employing 10 times that number of energy jobs…
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Anti-Drilling/Fossil Fuel | Industrywide Issues | Ohio | Statewide OH

OH Anti Group Claims Legislature Wants to Drill in State Lands (Redux)
November 17, 2014November 17, 2014

The wacko Ohio Environmental Council (committed anti-drillers all) is raising the alarm that the Ohio legislature, and RINO Gov. John Kasich, may be about to allow oil and gas drilling under state-owned lands. One can only hope they would be so smart as to allow it! Yes ladies and gents, an Ohio House committee is, according to the OEC, considering a “stealth effort” to re-open Ohio public lands to oil and gas drilling. Ooooo…
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Uncategorized

Calendar of Events for Nov 17-30, 2014 [Free]
November 17, 2014November 17, 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 Nov 17-30, 2014 [Free]”
Best of the Rest

Marcellus & Utica Shale Story Links: Mon, Nov 17, 2014
November 17, 2014November 17, 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: Mon, Nov 17, 2014”
Baker Hughes | Energy Services | Halliburton | Industrywide Issues | M&A

Big News: Halliburton in Talks to Buy Baker Hughes
November 14, 2014November 14, 2014

The biggest news to hit the oil and gas industry in recent memory happened yesterday. The financial press lit up (and ran HUNDREDS of stories) about the leak/announcement/news that oilfield services company Halliburton is “in talks” to buy out rival Baker Hughes. The largest oilfield services company in the U.S. (and in the world) is Schlumberger, followed by Halliburton (again, in both the world and in the U.S.). Baker Hughes (BH) is the fifth largest oilfield services company in the world, but #3 in the U.S. Halliburton’s market capitalization this morning–price per share times outstanding number of shares–is $47.65 billion. Baker Hughes’ market cap is $26.59 billion, up $5 billion since yesterday afternoon when the news broke. Combined, the two companies would be worth $74.24 billion and employ (if there are no layoffs) 144,000 people. Schlumberger’s market cap, by comparison, is $127.62 billion with 126,000 employees. Both Halliburton and BH are heavily involved in providing all sorts of services (rigs, fracking, logistics, etc.) for exploration & production companies in both the Marcellus and Utica, as well as every other major shale play in the U.S. AND in every conventional play around the world…
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Accidents | Blue Racer Midstream | Energy Services | Industrywide Issues | Noble County | Ohio

Blue Racer Midstream Explosion Kills One Worker in OH
November 14, 2014November 14, 2014

There was an explosion and fire at a Blue Racer Midstream condensate pumping skid (equipment that moves natural gas liquids through the stabilizer process) in Noble County, OH. An electrical contract worker from Virginia, Norman Butler (48 years old), sadly, was killed. The pump station is located next to a CONSOL Energy drill pad in northwest Marion Township, about 50 miles west of Wheeling, WV, between Interstates 70 and 77. A CONSOL spokesperson said none of the equipment at their site was affected and everything has been shut-in for now…
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Energy Services | GASFRAC | Ohio | Statewide OH | Utica Shale

GASFRAC Begins Waterless Fracking Job in OH Utica
November 14, 2014November 14, 2014

In May 2012 Canadian GASFRAC, a company that has pioneered waterless fracking by using liquefied petroleum gas (LPG, or propane) said they had contracted with an unnamed company to use their LPG fracking technology on two Utica Shale wells, as an experiment (see GASFRAC Waterless Fracking Technology Debuts in Utica Shale). How did it go? As far as we can tell, it never happened. Until now. According to the company’s third quarter update, released today, they’ve just begun to fracture their first well in the Utica. GASFRAC has been a company in trouble. They fired the CEO and COO in September 2012 (see Waterless LPG Fracking Company GASFRAC Fires its CEO, COO). The current CEO, according to today’s announcement, is still listed as being “interim”–meaning they still haven’t settled on a new long-term leader for the company. Revenues have tanked in the past year. Reading between the lines, the finances of the company look pretty bleak. According to interim CEO, Mark Williamson, all options are on the table for the company: soldier on and hope to improve the bottom line (not likely in our humble opinion), merge with someone else, or sell bits and pieces or the whole thing to someone else…
Read More “GASFRAC Begins Waterless Fracking Job in OH Utica”
Industrywide Issues | Pennsylvania | Pike County | Research | Wayne County

2 New USGS Studies Show Naturally Occurring Methane in NEPA Water
November 14, 2014November 14, 2014

Yesterday the U.S. Geological Survey released two studies of groundwater–one for Pike County, PA and the other for Wayne County, PA (both studies embedded below). The studies looked at well water samples in 2012 and 2013. In Wayne County 65% of the wells tested had detectable methane (i.e. natural gas) in the water. In Pike County, 80% of the wells had detectable methane in the water. Five alarms! Shale wells are polluting the water!! Oh wait…neither county has any shale drilling because both are in the Delaware River Basin and the DRBC (Delaware River Basin Commission) has so far not allowed shale drilling in the watershed. Methane can be either thermogenic (deep down methane found in shale) or biogenic (closer to the surface methane). Evidence of BOTH types were found in the survey. You can’t blame shale drilling, so what’s an anti-driller to do to when pesky scientific evidence rears its ugly head?…
Read More “2 New USGS Studies Show Naturally Occurring Methane in NEPA Water”
Energy Services | EnLink Midstream

EnLink’s Quest for Cash: Floats 10.5 Million Units to Raise $300M
November 14, 2014November 14, 2014

EnLink Midstream, a pipeline and processing plant company that operates in the northeast and other regions, is on a mission to raise cash. The company is actually two companies on paper: EnLink Midstream LLC (stock ticker ENLC) and EnLink Midstream Partners, LP (ticker ENLK). The later is a master limited partnership, or MLP, meaning they don’t issue shares of stock but something called “units”–which are roughly the same thing as shares of stock. EnLink’s units are publicly traded on the New York Stock Exchange. It was just last week that EnLink floated notes hoping to raise around $400 million (see EnLink Midstream Floats Notes, Hopes to Raise $400M for Expansion). Yesterday the MLP announced they are issuing another 10.5 million units. At this morning’s unit price of $29.43, that would represent another $309 million of cash. Hence our comment that they’re on a mission to raise cash…
Read More “EnLink’s Quest for Cash: Floats 10.5 Million Units to Raise $300M”