Marcellus Drilling News

Energy Companies | Gastar Exploration | Marshall County | Statewide WV | Utica Shale | West Virginia | Wetzel County

Gastar Top Brass Discusses 1Q14 Results, Drilling Program in WV
May 13, 2014May 13, 2014

Gastar is a sizable driller mostly concentrating on the Marcellus Shale in West Virginia. Gastar has begun to target the Utica layer as well. Yesterday Gastar’s top brass held their quarterly analyst call to discuss the company’s financial and operating performance. We’ve gone through the transcript and lifted out areas specifically dealing with the Marcellus and Utica Shale and have shared those below. You sometimes learn quite a bit from the prepared remarks–but you usually learn a lot with the Q&A that follows the prepared remarks.

In the prepared remarks we learn that Gastar is planning to move the focus of their WV drilling south–to Wetzel County–beginning in the third quarter of this year. They’ll drill two Marcellus and one Utica well first. Gastar’s CEO hastens to add that their drilling program is still intact in Marshall County with 10 wells planned for the second half of 2014. The Q&A gets into the nitty gritty of where and when pipelines will be run, how much it costs Gastar to drill a Utica well, and more…
Read More “Gastar Top Brass Discusses 1Q14 Results, Drilling Program in WV”
Energy Services | GreenHunter Resources | Industrywide Issues | Wastewater

GreenHunter 1Q14: Injection Well Volume up 97%, Barging Soon?
May 13, 2014May 13, 2014

In the parade of quarterly analyst calls, GreenHunter Resources–the wastewater handling division of Magnum Hunter Resources Corporation–held their call yesterday. We learned some interesting things from reading the transcript. Like, GreenHunter now owns and has operational 9 wastewater injection wells (often referred to as salt water disposal wells, or SWDs). We also learn that once the U.S. Coast Guard grants permission to begin barging wastewater down the Ohio River, GreenHunter will need something like $20 million to build out their barge facilities.

Below is the opening/prepared remarks from Kirk J. Trosclair, GreenHunter’s Chief Operating Officer, along with one Q&A about the barging facilities…
Read More “GreenHunter 1Q14: Injection Well Volume up 97%, Barging Soon?”
Industrywide Issues | Pennsylvania | Regulation | Statewide PA

Wetlands Banking Comes to PA – No, It’s Not a Savings & Loan
May 13, 2014May 13, 2014

At some time in the past 25 years, radical environmentalists succeeded in renaming swamps to “wetlands,” thereby re-casting the debate over whether it’s OK to build something on, in or under them. In other words, environmentalists made it really hard to drain a swamp, giving rise to things like mosquitoes that carry West Nile Virus. But we digress. Although this will sound rather bizarre, there is a new program alive in Pennsylvania whereby companies that want to, say, dig up a wetland to lay a natural gas pipeline, can buy credits to do so. What kind of credits and how?

Companies may now buy credits that create swamps, er wetlands, in other areas. That is, as long as the net amount of wetland acreage remains the same, the federal fascist bureaucracy is happy. (We know! Don’t bother will silly logic. Don’t ask questions like, “What happened when Indians ruled North America and nature created and destroyed swamps all on her own? Was there anyone around to ensure Mother Nature didn’t screw herself?”) Here’s the (to us) funny and bizarre story of what’s called “mitigation banking,” sometimes referred to as “wetlands banking”…
Read More “Wetlands Banking Comes to PA – No, It’s Not a Savings & Loan”
Economic Impact | Electrical Generation | Industrywide Issues | Jobs | Marshall County | West Virginia

Plan Advances to Build $615M Gas-Powered Electric Plant in WV
May 13, 2014May 13, 2014

The plans continue to advance to build a 549 megawatt electrical generating plant near Moundsville, WV that will be powered by Marcellus Shale gas (see Marcellus-Powered Electric Plant Coming to Marshall County, WV). As MDN previously reported, the deal to get it built and operating is a tad complicated (see Complicated Deal for Proposed WV Gas-Powered Electric Plant). Essentially the deal boils down to this: the company that will build and operate the plant will turn over the deed to the facility once it’s built to the county and pay the county lease payments each year in lieu of paying taxes. It’s a win/win for everyone. Right now the land on which the plant will be built is an EPA brownfield producing no taxes.

Here’s more details on just how the plan will work for Marshall County:
Read More “Plan Advances to Build $615M Gas-Powered Electric Plant in WV”
Exporting | Industrywide Issues | Pennsylvania | Statewide PA

PA Marcellus Shale Gas Going to…Latvia?!
May 13, 2014May 13, 2014

The prime minister of Latvia–Her Excellency Mrs. Laimdota Straujuma–recently visited Philadelphia. For those who don’t know, Latvia is an ex-Soviet Union country in eastern Europe. Mrs. Straujuma wants U.S. natural gas–Marcellus gas–really bad. Some of the unnamed people she met with in Philly said they’ll be more than happy to sell her some–as soon as the Obama administration gets off it’s rear-end and issues export permits.

Here’s the story of how home-grown, cheap, abundant Marcellus Shale gas may give freedom in Europe a boost (and give the dangerous bully Putin a poke in the eye)…
Read More “PA Marcellus Shale Gas Going to…Latvia?!”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Regulation

Media Bias in Story re NJ Senate Vote to Ban Frack Waste
May 13, 2014May 13, 2014

We’re always amazed that because a newspaper is published on dead trees, the reporters for that paper are somehow accorded the honor of being impartial and unbiased–and the pap they write, especially about drilling and fracking, is somehow impartial and unbiased. When in fact nothing could be further from the truth. Case in point: an article appearing in today’s Hackensack, NJ’s The Record, reporting on a bill that passed the NJ Senate yesterday that would ban the treatment or disposal of frack waste in the state. The story says “environmentalists” are delighted because they may be able to arm-twist enough legislators to override a veto by Gov. Christie this time around (they tried it in 2012 and failed).

It’s the way the obviously anti-drilling reporter “reports” (or rather mis-reports) the news that is so egregious. The article is anything but impartial. The “reporter” (we’d say anti-drilling advocate) definitely takes a side, and attempts his best smear job at clean, safe fracking for natural gas–used by his own state in quantities larger than most other states. To which we say: When will PA, WV and OH start banning their shale gas from being sold to states like NJ and others who ban fracking or the clean, safe treatment of frack waste? Here’s is the article with MDN’s suggested edits, using ~~strike throughs~~ and [brackets]…
Read More “Media Bias in Story re NJ Senate Vote to Ban Frack Waste”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania | Statewide PA

Final PA Democrat Gov Debate Interrupted by Anti-Drilling Kook
May 13, 2014May 13, 2014

Last night was the final debate in Philadelphia between the final four Democrat candidates seeking the nomination to run for governor in November in Pennsylvania. Which was a yawner. All four are Democrat hacks that will try to screw up the economic miracle happening in PA from Marcellus Shale drilling. None of them deserve your vote–including the presumptive winner of today’s primary, Tom Wolf.

We only mention last night’s debate because a hysterical (i.e. distraught) young woman who is anti-drilling took to the stage and interrupted the debate to vomit out the same old lies that drilling’ll kill everyone and Mother Earth, while the obsequious candidates just looked on. It was, well, hysterical (i.e. funny)…
Read More “Final PA Democrat Gov Debate Interrupted by Anti-Drilling Kook”
Best of the Rest

Marcellus & Utica Shale Story Links: Tue, May 13, 2014
May 13, 2014May 13, 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: Tue, May 13, 2014”
Coterra Energy (Cabot O&G) | Energy Companies | Energy Services | Lackawanna County | Luzerne County | Pennsylvania | Susquehanna County | UGI Energy Services

Cabot O&G to Supply NatGas for All of Scranton/Wilkes-Barre
May 12, 2014May 12, 2014

As we pointed out in January, UGI, a large northeast Pennsylvania utility (and midstream) company persevered against anti-progress, anti-drillers and eventually won and built the Auburn pipeline (see UGI Wins! Auburn Pipeline with Marcellus Gas in NEPA Goes Live). As we pointed out last week, UGI is building two more pipelines that will increase their delivery capacity by another 300 million cubic feet per day–all of it being supplied by Cabot Oil & Gas from Susquehanna County (see UGI Energy Building 2 New Pipelines in NEPA for Cabot O&G).

Now comes word from UGI that by this fall, “most” of the natural gas supplied and used by consumers in the Scranton/Wilkes-Barre area will be Marcellus Shale gas supplied by those two new pipelines. That means, in essence, that a single company–Cabot Oil & Gas–drilling in a single northeastern PA county–Susquehanna–will be supplying enough gas to meet all of the needs of NEPA’s largest metro area. Very cool. Ever cooler–Cabot has plenty of gas leftover to pipeline to New York, New England and other points in the U.S. and beyond. Behold the miracle of safe, effective and efficient hydraulic fracturing…
Read More “Cabot O&G to Supply NatGas for All of Scranton/Wilkes-Barre”
American Energy Partners | Chesapeake Energy | Energy Companies | Industrywide Issues | M&A

Rumor Mill: Aubrey McClendon Buying Enduring Resources
May 12, 2014May 12, 2014

Reuters is reporting the rumor that Aubrey McClendon, former CEO of natgas behemoth Chesapeake Energy and current CEO of a new startup–American Energy Partners–is close to sealing a deal to buy Enduring Resources. Enduring is a shale driller with active rigs in both Utah and Texas. Rumor has it that the deal values Enduring at $2 billion, which is about how much money Aubrey has raised so far for his drilling program in the Utica Shale.

We told you before and will tell you again–never sell Aubrey McClendon short. Chesapeake (and corporate raider Carl Icahn) will come to rue the day they booted Aubrey out the door. Here’s what Reuters says about the rumor…
Read More “Rumor Mill: Aubrey McClendon Buying Enduring Resources”
Energy Companies | Gastar Exploration | Marshall County | Ohio County | Stone Energy | Utica Shale | West Virginia | Wetzel County

Gastar, Stone Energy Jump on the Utica/WV Bandwagon
May 12, 2014May 12, 2014

Gastar has traditionally concentrated on Marcellus Shale drilling in the northern panhandle of West Virginia. However, Gastar is currently drilling its first Utica Shale well in WV–in Marshall County. Based on results from others who have tried the Utica in WV, they believe they’ll have a winner.

It’s not cheap to drill the Utica in WV. The Utica/Point Pleasant formation sits two miles down. It typically costs $7 million to drill a Marcellus well in WV’s northern panhandle area–but a Utica well will cost them something like 3x that amount. And Gastar is still tickled pink and believe they’re going to make boatloads of money on it…
Read More “Gastar, Stone Energy Jump on the Utica/WV Bandwagon”
Industrywide Issues | Lease & Royalty Payments | Pennsylvania | Regulation | Statewide PA

Status Report on PA Royalty Bill HB 1684 – Recess Limbo
May 12, 2014May 12, 2014

As MDN told you three weeks ago, Pennsylvania House Bill (HB) 1684 has hit some turbulence on its way to quick passage (see PA HB 1684 Guaranteed Minimum Royalty Act Hits a Snag). The bill, as originally introduced, was supported by the PA chapter of the National Royalty Owner’s Association and would provide for landowners to receive a minimum 12.5% in royalties, disallowing some of the shenanigans Chesapeake Energy has engaged in with reducing post-production expenses via a back door (see PA NARO Alert: Tell Your State Rep to Vote YES on HB 1684).

But along the way the drilling industry objected–rather loudly–saying lease contracts signed by two parties, the landowner and the driller, should not be modified by the legislature (see Rare Schism Between Landowners & Drillers over PA Royalty Law). Since the original bill, a number of amendments have been proposed, one of them that may well get adopted, that would fundamentally gut the intention of the bill to provide a minimum 12.5%. Lawmakers debated HB 1684 and amendments last week–before adjourning and heading out of town for a 3-week recess (wish we had a 3-week vacation whenever we wanted!). Here’s a status report and update on what happened last week and where things now stand with HB 1684…
Read More “Status Report on PA Royalty Bill HB 1684 – Recess Limbo”
Chesapeake Energy | Energy Companies

Chesapeake’s CEO Celebrates Axing 1,200 People Making Carl More $
May 12, 2014May 12, 2014

We’re not sure there’s all that much to celebrate at Chesapeake–unless you’re Doug Lawler, Carl Icahn’s toady who’s axed over 1,200 people (see The Great Chesapeake Massacre: Lawler Fires 800 People in One Day) and sold off everything but the kitchen sink. Doug managed to increase production a paltry 11% in first quarter 2014 while hacking away at just about everything. Big whoop.

Excuse us if we don’t join in the victory lap now being taken by Lawler after he decimated the company’s people on his way to making corporate raider Carl Ichan more money in 1Q14…
Read More “Chesapeake’s CEO Celebrates Axing 1,200 People Making Carl More $”
Industrywide Issues | Pennsylvania | Research | Statewide PA

PA DEP Publishes First Annual O&G Report + Video (Very Cool)
May 12, 2014May 12, 2014

Last week the Pennsylvania Dept. of Environmental Protection (DEP) published their first-ever Oil and Gas Annual Report–for the year 2013 (full copy below). The report celebrates the miracle of fracking shale in PA and the DEP’s hard work to keep it safe. Along with the report (with a lot of great information) the DEP has released a video starring some of the hard-working people for the Office of Oil and Gas Management. It is a FABULOUS video–we’ve embedded it below. Please give it a watch and as you have time, peruse the 31-page first-ever Annual report.

First up, the DEP press release announcing the report and its raison d’être…
Read More “PA DEP Publishes First Annual O&G Report + Video (Very Cool)”
Hydraulic Fracturing | Industrywide Issues | Regulation

Rogue Federal EPA Tries New Power Play to Regulate Fracking
May 12, 2014May 12, 2014

On Friday the rogue and out-of-control federal Environmental Protection Agency continued its rogue and out-of-control ways. Even though the drilling industry has formed FracFocus.org to register the chemicals used at every single well drilled, and even though many states require their drillers to file reports with FracFocus, and even though anyone, including you and me as well as the EPA can run a quick search on any well to find out what chemicals have been used–the EPA is considering their own rule on reporting. On Friday the EPA issued an Advance Notice of Proposed Rulemaking (ANPR, full copy embedded below) that threatens to bring down the jackboots of the EPA on the necks of drillers everywhere–requiring them to do what they already do. In their ANPR the EPA says maybe new regulations will be federal regs (in violation of the U.S. Constitution which stipulates the states regulate oil and gas drilling), or maybe it will be voluntary, maybe it will be just a report filed with the feds, maybe a report filed with a third party (like FracFocus). Lots of maybes in the generic, mealy-mouthed ANPR.

Make no mistake. This is the beginning of a huge power grab–something the EPA has lusted for. The clock is ticking on the failed Obama administration and they want to grab any power–by law or fiat–that they can. The EPA has NO business regulating oil and gas drilling in the United States–unless we hand it to them on a silver platter. Once published in the Federal Register there will be a 90-day comment period. Let’s flood the power-crazed EPA with comments telling them “no thanks.” Below is the EPA press release along with a copy of the draft ANPR…
Read More “Rogue Federal EPA Tries New Power Play to Regulate Fracking”
Anti-Drilling/Fossil Fuel | Bradford County | Economic Impact | Hydraulic Fracturing | Industrywide Issues | New York | Pennsylvania | Statewide NY | Statewide PA | Steuben County

PA Farmers Flourish Thanks to Marcellus While NY Farmers Fail
May 12, 2014May 12, 2014

A rather long, and surprisingly pretty balanced, article appeared over the weekend in The Buffalo News comparing and contrasting Pennsylvania and New York’s approach to the issue of shale drilling. The reporter actually talked to a number of sources on both sides of the drilling issue and wrote a good article that presents the facts of the economic miracle happening in PA, and the economic misery happening in upstate NY because of our state’s dithering. You can tell it’s a good article when the cadre of about a half dozen anti-drillers (pathetic people with no lives apart from opposing drilling) flock to the comments to condemn the article and condemn those who dare to post a positive comment about drilling.

The article opens with the classic tale of two cities theme, comparing the fortunes (or lack thereof) of two farmers on opposite sides of the NY/PA border…
Read More “PA Farmers Flourish Thanks to Marcellus While NY Farmers Fail”