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    First-Hand Account of History-Making PA Energy Rally

    PA Energy Rally - Tom Shepstone picAlthough MDN editor Jim Willis literally missed the bus and could not attend the PA Energy, PA Jobs rally in Harrisburg, PA on Tuesday (see PA Energy Rally Huge Success with Thousands Marching to Capitol), our good friend Tom Shepstone was there. He performs a miracle with his coverage–he captures the tone and essence of the event in written word (and pictures and a video). Tom is a real gem, staunchly pro-drilling, wicked smart–and a superb writer. If MDN could be anyone else, we would be Tom!

    Forthwith, here is Tom’s report (from his always excellent Natural Gas Now website) in its entirety–well worth your time to read, especially if you could not attend…
    Read More “First-Hand Account of History-Making PA Energy Rally”

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    Chesapeake’s Born Again Zeal for Utica Dry Gas Drilling

    Sounding positively ebullient, Chesapeake Energy has let it be known that they are going after dry gas areas in the Utica Shale. Chessy has been testing–and they like what they see from methane-only areas where they happen to own hundreds of thousands of acres of leases in Ohio.

    Is it fake enthusiasm because they mostly missed the wet gas area of the play when they leased and they want to psyche out investors? You decide. Appears to us like they are genuinely enthusiastic about dry gas drilling in the Utica. Who knew?…
    Read More “Chesapeake’s Born Again Zeal for Utica Dry Gas Drilling”

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    Loophole in WV Landfill Law for Drill Cuttings Raises Concern

    Two months ago MDN brought you the news that a proposed bill to strengthen landfill requirements for Marcellus Shale drill cuttings (leftover rock and dirt from drilling) in West Virginia had passed in a special session of the legislature (see WV Drill Cuttings in Landfill Bill Passes in Record Time). The new bill, proposed by the WV Dept. of Environmental Protection provides for a special cell where the waste is stored, leachate from that cell monitored, and special radiation detectors installed. All great protections.

    The new bill also disallows the special cell for drill cuttings to be built in landfills that sit over top a “karst” topography (where there are a lot of underground caves, sinkholes, cracks and fast-moving underground streams). However, there is one loophole in the new law that recently came to light: If landfills above a karst topography area are happy with maintaining their current lower cap of 9,999 tons per day of solid waste, they can accept drill cuttings in the regular part of the landfill. One WV lawmaker is trying to get that changed, fearing the landfill in his karst district may decide to accept drill cuttings…
    Read More “Loophole in WV Landfill Law for Drill Cuttings Raises Concern”

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    Allegheny Cty Approves Deer Lakes Park Lease, Antis Throw Tantrum

    Even though anti-drillers turned out in droves to pack an Allegheny County, PA Council meeting Tuesday night, and even though the Council is packed with Democrats, and even though Council members sat through more than five hours of their own anti-drilling constituents droning on and on about fracking, saying the same stupid things over and over–in the wee hours of Wednesday the Council finally (!) voted to approve a lease for drilling under (not on) Deer Lakes Park (for background, see Allegheny Co Exec Bests Range on Deer Lakes Park Lease Deal). Strangely, some of the Republicans on the Council voted against the plan.

    After the vote, the anti-drillers do what they always do–behaved like children throwing a temper tantrum. They hollered, booed and in general made asses of themselves. What will they do now? Burned out hippies need a cause to inject meaning into their otherwise pathetic and meaningless lives. Maybe they’ll try a court case? Who knows–and frankly, who cares. Meanwhile, the grownups, including Range Resources, carry on. Range says they hope to begin drilling under Deer Lakes Park by the end of this year…
    Read More “Allegheny Cty Approves Deer Lakes Park Lease, Antis Throw Tantrum”

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    Youngstown Frack Ban Vote Goes Down in Flames for 3rd Time

    Youngstown has now voted for a third time on a proposed fracking ban in the city. And for the third time, it was voted down by an overwhelming majority. (For our most recent coverage, see 20 Youngstown U Profs Attempt PR Stunt on Frack Ban – Goes Limp.) Three strikes and you’re out, right? Not according to the virulent anti-drillers who have made opposing the miracle of shale drilling in Ohio their life’s cause.

    Susie Beiersdorfer and Lynn Anderson, two of the chief agitators for the ban, something they and others have intentionally mislabeled as a “Community Bill of Rights” (it’s nothing of the sort), say they’re happy to keep wasting taxpayer’s money on useless votes that don’t pass. Didn’t pass the third time? They want it to come back a fourth, fifth, umteenth time. We say it’s time to start sending them the bill for votes that don’t pass. That would stop this nonsense but quick…
    Read More “Youngstown Frack Ban Vote Goes Down in Flames for 3rd Time”

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    New PA Bill Would Separate Conventional/Unconventional Regulations

    This one goes under the “that’s interesting” heading. Three Pennsylvania Republican legislators say they will soon introduce new legislation that will separate regulations for conventional (vertical only) and unconventional (shale) drilling in the state. According to Reps. Martin Causer (R-Turtlepoint), Kathy Rapp (R-Warren) and Matt Gabler (R-Clearfield/Elk), the two styles of drilling are way different and “it simply makes no sense to apply the same standards to these operations.” Huh.

    We’re sure the representatives have the best of intentions, but we’re not sure new and different regulations are required. The concern is not about unconventional rules and regulations–the concern is that new rules implemented for unconventional drilling are and have been onerous for traditional/conventional drilling. The claim is that the rules applied across the board to both types of drilling are driving many mom and pop drilling operations out of business. Below is the press announcement and justification for the politicians’ proposed new legislation. We’ll reserve judgment for now and wait to hear more. In the mean time, we come down on the slightly skeptical side that this is truly needed…
    Read More “New PA Bill Would Separate Conventional/Unconventional Regulations”

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    Bend Over Ohio – You’re About to Get a Frack Tax

    In classic socialist manner, a Republican-controlled Ohio House committee is set to vote today on a “compromise” (meaning it will hurt just a little less) bill that will raise Ohio’s severance tax on shale drilling, thereby reducing the economic miracle in the state. We’re still “months away” from final passage of the measure, but if this vote goes in favor of a high frack tax, you can be sure it will pass the full House and Senate. Which is unfortunate for Ohio’s landowners, drillers and the many people who now work for the industry and related businesses that sell to the industry. It will certainly mean a slow-down in drilling.

    All because Gov. John “foreigner hunter” Kasich wants to transfer wealth from those who produce it (landowners and drillers, out of whose pockets it will come) to those who do not produce (via a state income tax cut). It’s sleazy–but there you go. Of particular interest is that most of the new tax (85% of it) will go out of the communities where drilling actually happens. The political calculation is that a few pennies on the dollar will buy those communities’ silence that they’re being robbed (better something than nothing, right?). In Pennsylvania, 60% of the money raised through a reasonable impact fee stays in the communities where drilling happens. That’s the right way to do it…
    Read More “Bend Over Ohio – You’re About to Get a Frack Tax”

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    Sunoco Logsitics CEO Says Legal Issues Won’t Delay Mainer East

    Sunoco Logistics held an analyst call yesterday to discuss first quarter 2014 earnings and operations. On the call, Sunoco Logistics’ CEO Michael Hennigan had quite a bit to say about both the Mariner East 1 pipeline, due online starting later this year, and the proposed Mariner East 2 pipeline that would run along side Mariner East 1. MDN has been monitoring the latest legal situation with Mariner East and with Sunoco’s request to be made a public utility corporation (for the latest, see Sunoco Hires Big Gun Law Firms to Help Complete Ethane Pipeline).

    MDN found Hennigan’s comments interesting. When asked by an analyst about the NIMBY pushback their getting in building the 50-mile pipeline in western PA, and the pushback on building new compressor stations in eastern PA and whether that would delay or cost the company more money–Hennigan said “no” and that Sunoco is “very confident that we can work through those issues.” Bluster? Brave face for investors? Calm assurance? Who knows. MDN has extracted all of the comments and Q&A’s from yesterday’s call that touch on either the Mariner East 1 or 2, or Mariner West pipeline. We’ve also embedded (below) a copy of the PowerPoint slides used during the call. Pay attention, in particular, to the slides on pages 9, 10 and 11…
    Read More “Sunoco Logsitics CEO Says Legal Issues Won’t Delay Mainer East”

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    MarkWest Energy 1Q14: Earnings Up 33%, Focus on Marcellus/Utica

    MarkWest Energy released their first quarter 2014 update yesterday. As MDN pointed out just yesterday, MarkWest currently has 17 major pipeline and processing plant projects under way in the Marcellus and Utica, of the 17 they intend to complete 11 of them by the end of this year (see MarkWest Announces 2 Processing Plant Expansions in WV, 400 Mmcf/d). From yesterday’s update we learn that earnings were up 33% over the same quarter last year. Although MarkWest operates in other areas of the country, yesterday’s update makes it obvious that most of their assets–and focus–are on the Marcellus and Utica Shale region.

    Here’s yesterday’s update with a rundown of what’s happening with their projects in the Marcellus and Utica:
    Read More “MarkWest Energy 1Q14: Earnings Up 33%, Focus on Marcellus/Utica”

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    Antero Resources 1Q14: Production Up 105%, Earnings Down $95M

    Antero Resources released their first quarter 2014 update yesterday. Antero is a big and important driller in both the Marcellus and Utica Shale region–particularly in the wet gas areas of West Virginia and eastern Ohio. Antero reports daily gas equivalent (converting liquids to gas) production reached an average 786 million cubic feet equivalent per day (MMcfe/d) in the first quarter, up a healthy 105% from first quarter in 2013. They’re also producing more liquids than ever–16,332 barrrels per day, a 583% increase over 1Q13. On the down side, they report a net loss from operations of $95 million for 1Q14–mostly due to hedging in the financial markets. If you took away the hedging losses, net income would have been up $88 million, or 225% over 1Q13.

    In the update below Antero talks about their recent lease acquisition of Piedmont Lake in Ohio’s Utica Shale, and about the recent announcement (from two days ago) that they have committed to another 200 million cubic feet per day of processing capacity at MarkWest’s Sherwood facility in Doddridge County, WV. Here’s the update…
    Read More “Antero Resources 1Q14: Production Up 105%, Earnings Down $95M”

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    PA Energy Rally Huge Success with Thousands Marching to Capitol

    I Missed the BusA (not so funny) thing happened on the way to the forum, er PA Energy Rally yesterday. MDN editor Jim Willis showed up at the appointed bus stop at 6:45 am with 15 minutes to spare–and as he pulled in, the bus was pulling out onto Interstate 81. Jim missed the bus! The Marcellus Shale Coalition has been very apologetic (and very upset with the bus company–the contract clearly states don’t leave until 7 am). So after inviting you to the rally, and with intentions of having a first-hand account report, Jim missed it. He was equal parts sad and angry–but that’s life.

    But don’t despair. By all accounts it was a great day with anywhere from 2,500-3,000 people marching to the Capitol steps in Harrisburg. By the way, when was the last time you heard about 3,000 anti-drillers marching in Harrisburg? Yeah, us neither. There were, however, anti-drillers who tried to rain on the parade–something like 6 to 8 anti-drillers. You read that right–single digits for the loonies who turned out to hold up a sign against shale drilling in their big, huge “counter protest.” The only people who even noticed them were reporters sticking cameras in their faces. At one point a single anti-driller tried to shout something. A few pro-drillers noticed–and laughed. Silly fools.

    Below we have a couple of media accounts of the rally. Strangely, the AP article is about the most fair and balanced we found. The reliably anti-drilling StateImpact Pennsylvania covered it too, with their reliably anti-drilling slant. We also have a funny sour grapes comment from the anti-drilling Jan Jarrett, former president/CEO of the anti-drilling environmentalist group PennFuture…
    Read More “PA Energy Rally Huge Success with Thousands Marching to Capitol”

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    Correction: Engineering Firm “Impressed” with Fracking in PA

    Every now and again (not often!) MDN makes a mistake–and when we do, we always attempt to fix it. Two days ago MDN highlighted an article out of New Jersey about a NJ engineering company, Sadat Associates, Inc., about to open an office in Montrose, PA (see NJ Engineering Firm Coming to Montrose to Clean Up Fracking Mess). Our snarky remark was that the firm may want to keep focusing on polluters in NJ rather than arrive on the scene to “fix” the problems fracking creates in northeastern PA. Our comment was in reaction to a quote from Sadat’s president Lahbib Chibani, who said: “I think they are going to have serious environmental issues if they are not addressed correctly.”

    The CEO of Sadat Associates, Marwan Sadat, wrote a gracious email to MDN to set the record straight. He said he believes MDN misunderstood Dr. Chibani’s comment and that Sadat is a supporter of fracking and impressed by what they have observed so far. Here’s is Dr. Sadat’s letter to us…
    Read More “Correction: Engineering Firm “Impressed” with Fracking in PA”

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    MarkWest Announces 2 Processing Plant Expansions in WV, 400 Mmcf/d

    Yesterday MarkWest Energy, arguably the biggest midstream company in the Marcellus and Utica Shale, announced it will expand two of its existing natural gas processing plants, both plants in West Virginia. At the request of Antero Resources, MarkWest will expand the Sherwood plant in Doddridge County by an extra 200 million cubic feet per day (Mmcf/d) of processing capacity. At the request of EQT, MarkWest will expand the processing capacity at the Mobley plant in Wetzel County by an additional 200 Mmcf/d. It means that Marcellus drillers are confident enough to bet big money on long-term contracts with MarkWest that the amount of gas they’re producing is going up–for years to come.

    In yesterday’s announcement MarkWest noted that they currently have 17 major projects under way in the Marcellus/Utica, and that 11 of those projects will be completed this year. Here’s the details on the Sherwood and Mobley expansions…
    Read More “MarkWest Announces 2 Processing Plant Expansions in WV, 400 Mmcf/d”

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    UGI Energy Building 2 New Pipelines in NEPA for Cabot O&G

    UGI Energy Services, a subsidiary of UGI (a utility company in northeast PA) announced yesterday they are building two new pipelines in northeast PA for $80 million that will allow them to transport an additional 300 million cubic feet of natural gas per day. The new capacity is 100% spoken for by the prolific producer Cabot Oil & Gas–the first and so far still the largest producer of dry gas in the Marcellus Shale–pumping more than a billion cubic feet per day from Susquehanna County, PA (see The Cabot O&G Marcellus Rocketship – To the Moon!).

    One stretch of pipeline will expand UGI’s Auburn Gathering System. The other will expand pipeline from Clifford Township to Union Dale Borough. Here’s the particulars of two new pipes that will bring much-needed extra capacity to Cabot…
    Read More “UGI Energy Building 2 New Pipelines in NEPA for Cabot O&G”

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    Williams Briefs Luzerne Cty Officials on Transco Atlantic Sunrise

    In February Williams announced a $2.1 billion expansion to their Transco natural gas pipeline (see Williams Plans $2.1B Transco Pipeline Expansion, 100% Sold Already). The name of the expansion project is Atlantic Sunrise and if it stays on schedule it will be built starting 2016 and go live in 2017. It aims to, for the first time ever (for the Transco), flow gas from north to south–delivering Marcellus Shale gas to southern markets. The project will expand the Transco pipeline’s capacity by some 20%–the “largest expansion that we’ve done in the Transco system’s history” according to Williams.

    Which is all good news–except right on cue NIMBYs (not in my back yard) have already cropped up to oppose it–at least in Lebanon County, PA (see Lebanon Opposition to Williams Transco Pipeline Sunrise Expansion). Williams briefed a a Luzerne County, PA Council committee meeting last night. Seems the folks in Luzerne are a bit more open-minded about the possibilities. Here’s some great insight into the Atlantic Sunrise project and how it will affect Luzerne along its path to making history…
    Read More “Williams Briefs Luzerne Cty Officials on Transco Atlantic Sunrise”

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    NatGas-Fired Electric Generating Plant OK’d for Carroll County OH

    A new 742 megawatt natural gas fired combined cycle electrical generating plant for Carroll County, OH has just been given the green light by the Ohio Power Siting Board. The new plant will cost $800 million to build, with 500 construction-related jobs during the building phase. Once complete, the plant will employ 25-30 full-time workers and provide enough electricity to power 700,000 homes.

    The green light announcement, which is the final hurdle before construction can begin:
    Read More “NatGas-Fired Electric Generating Plant OK’d for Carroll County OH”