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Marcellus Drilling News
  • Beaver County | Economic Impact | Energy Companies | Ethane | Industrywide Issues | Jobs | Pennsylvania | Processing Plants | Shell

    Big News from Shell PA Meetings: Beaver County WANTS a Cracker!

    April 17, 2014April 17, 2014

    Yesterday Shell held two meetings in Beaver County, PA to talk to area residents about their proposed plan to possibly build a multi-billion dollar ethane cracker plant. One session was from 11 am to 2 pm, the other from 4-7 pm, both held at the Shadow Lakes country club in Hopewell. Shell expected around 350 people to show up for the daytime session–more than 700 showed. By the end of the day, well over 1,000 people attended the two sessions. As predicted, Shell did not say they’ve decided to move forward, but they are still actively pursuing the project. From that perspective, neither event produced anything “newsworthy.”

    Yet, there was big news coming from the two sessions: Attendance was twice what they expected, and the overwhelming majority of those attending support the project and want to see it built. We would go so far as to say Beaver County came out in force with open arms and rolled out the red carpet for Shell. They WANT this cracker plant, and they want it bad. Which is good news for Shell–to have such overwhelming community support…
    Read More “Big News from Shell PA Meetings: Beaver County WANTS a Cracker!”

  • Bradford County | Chesapeake Energy | Crime | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Pennsylvania | Statewide PA

    PA AG Kathleen “Anti-Driller” Kane Probes Chessy Royalty Issue

    April 17, 2014April 17, 2014

    Pennsylvania Attorney General Kathleen Kane’s office is interviewing people on the Chesapeake Energy royalties screwing scandal, reportedly. We have mixed emotions about it. Yes, the state needs to investigate and see if there has been malfeasance. However, we question whether an avowedly anti-drilling AG has the moral or ethical ability to do so honestly. Yes, we ARE questioning her fitness for the office. Problem is, Gov. Tom Corbett and other PA Republicans like State Sen. Gene Yaw asked her to investigate–so it’s on their heads if she turns into the proverbial bull in a china closet and takes the opportunity to try and destroy the drilling industry as part of her “investigation.”

    Here’s the latest from the rumor mill on Kane’s so-called royalty investigation…
    Read More “PA AG Kathleen “Anti-Driller” Kane Probes Chessy Royalty Issue”

  • Endeavour Intl | Energy Companies | Industrywide Issues | Litigation | McKean County | Pennsylvania | Potter County | SM Energy

    Endeavour & SM Energy Settle Lawsuit over PA Marcellus Properties

    April 17, 2014April 17, 2014

    In July 2011 MDN told you that independent energy company Endeavour International entered into a deal with SM Energy for 50,000 Marcellus Shale acres, three producing gas wells and a pipeline located in McKean and Potter counties in Pennsylvania. The deal was worth $110 million (see Endeavour International Buys Lease for Additional 50K Marcellus Acres & Local Pipeline in PA from SM Energy). Five months later Endeavour pulled out of the deal and SM Energy threatened to sue (see Endeavour Leaves SM Energy at the Altar, SM Ready to Sue).

    SM Energy made good on its threat and for the past 2 1/2 years the deal has been tied up in court with both sides suing each other. Endeavour said there were problems with clear title to the property and that the pipeline was not up to scratch. SM said they didn’t misrepresent anything and Endeavour simply got cold feet. Lots of lawyers and legal fees ensued. Today Endeavour issued an announcement that all of the suing and counter-suing is over and both sides have now settled…
    Read More “Endeavour & SM Energy Settle Lawsuit over PA Marcellus Properties”

  • Crime | Industrywide Issues | Mahoning County | Ohio | Wastewater

    3rd Person Pleads Guilty to Dumping Wastewater in Mahoning River

    April 17, 2014April 17, 2014

    A few weeks ago MDN told you that a third person, Mark Goff, had been charged in last year’s Youngstown, OH frack wastewater dumping case (see 3rd Person Charged in Youngstown Frack Wastewater Dumping Case). He’s now plead guilty to violating the Clean Water Act by dumping frack wastewater into a drain that eventually emptied into the Mahoning River on nine different occasions…
    Read More “3rd Person Pleads Guilty to Dumping Wastewater in Mahoning River”

  • Energy Services | Kinder Morgan | Tennessee Gas Pipeline

    Kinder Morgan 1Q14 Update: Marcellus/Utica Important to Company

    April 17, 2014April 17, 2014

    Kinder Morgan, the country’s largest midstream company and third largest energy company of any kind, issued an update yesterday on first quarter operations. The company reports that for the 51st consecutive time since 1997 the company is increasing their quarterly distribution to shareholders (technically unit holders). Kinder Morgan is the owner of the Tennessee Gas Pipeline, among other assets in the Marcellus and Utica region. According to yesterday’s update, the Marcellus and Utica play an increasingly important role for the company.

    We’ve selected out sections from the update that mention the Marcellus and/or Utica, so you’re quickly up to date on Kinder’s operations in the northeast…
    Read More “Kinder Morgan 1Q14 Update: Marcellus/Utica Important to Company”

  • Industrywide Issues | Pennsylvania | Statewide PA | Taxation

    Pressure Rises for Fair Tax on News Industry (Absurdity Illustrated)

    April 17, 2014April 17, 2014

    Since no one else but Gov. Corbett is sticking up for the existing impact fee on Marcellus drilling in PA that raises millions of dollars (and not doing all that great a job of it), on Monday MDN took a stab at making a case for the fundamental unfairness of targeting a specific industry or group of people for high taxes by justifying such an action as being “for the children” (see PA Dem Candidates’ Siren Song: Severance Tax “for the Children”). We told you that Democrats and their sycophantic supporters in the media would turn up the volume on a call for high severance taxes on the natural gas industry. We didn’t know just how quickly our words would come true!

    Today, after having met with and getting stoked by extreme liberal Allyson Schwartz (who is running for governor), the liberal Democrat editorial propagandists at the Scranton Times-Tribune dedicated their precious editorial space to a call for high severance taxes–and to bludgeon Republicans into supporting those high taxes. So we thought we would take the opportunity to tweak their editorial and in every instance of “severance tax” and “natural gas industry” replace those words with “news tax” and “news industry.” We wonder if the Times-Tribune editors would be in favor of this tax if it specifically targeted–or included–their operation and the operations of their liberal brethren? And what if the severance tax bill also included a new, extra 5% tax on the salaries of PA legislators. Would it pass then? You get the idea. Targeting a specific industry or group of people, no matter how “noble” the cause in using the money raised, is an obscene governmental abuse. It is theft. Here is our attempt to illustrate the absurd by using absurdity and turning their argument right back on them…
    Read More “Pressure Rises for Fair Tax on News Industry (Absurdity Illustrated)”

  • Anti-Drilling/Fossil Fuel | Industrywide Issues | Ohio | Regulation | Statewide OH | Utica Shale | Wastewater

    OH Anti-Driller Suing MWCD Asks EPA to Stop OH Injection Wells

    April 17, 2014April 17, 2014

    The virulently anti-drilling and misnamed Fresh Water Accountability Project (FWAP) has just generated more toilet paper, er, a press release in which they claim they’ve written a letter to the Region 5 office of the federal Environmental Protection Agency asking the EPA to trample on the U.S. Constitution by stripping away the right of Ohio to issue permits for Class II injection wells. Nothing new there–such groups habitually like to enforce their fascism on common folks (which is why they should be vigorously opposed and defunded).

    The interesting thing to MDN is not that the FWAP is generating yet another fundraising press release–but that it was written by Lea Harper–you know, the woman who’s suing the Muskingum Watershed Conservancy District to try and stop fracking and drilling on MWCD land around Seneca Lake (see Anti-Drillers Win Minor Victory Against Muskingum Watershed Dist). It’s also no coincidence that Lea Harper and her FWAP is being partially (or wholly) funded by the odious and fascist Food & Water Watch. That is, FWAP is nothing more than a front for FWW. We just thought you’d want to know how incestuous it is with anti-drillers…
    Read More “OH Anti-Driller Suing MWCD Asks EPA to Stop OH Injection Wells”

  • Industrywide Issues | Landfills | Wastewater

    Groundhog Day: Bloomberg’s Radioactive Reportage Keeps Returning

    April 17, 2014April 17, 2014

    Another “It’s radioactive!” hit piece from Bloomberg. We swear that reporters with an anti-drilling agenda simply have an editorial calendar and every X months it’s “write another story about how the Marcellus is producing radioactive drill cuttings and wastewater.” Sprinkle said story with comments from discredited professors from places like Duke University, vague innuendo about glowing in the dark, and voilà–another deadline met, another hit piece delivered.

    That about sums up the latest piece of rubbish that passes for journalism at Bloomberg–where the only thing radioactive is the reporting…
    Read More “Groundhog Day: Bloomberg’s Radioactive Reportage Keeps Returning”

  • Energy Companies | Noble Energy

    Changes at the Top for Noble Energy – Chairman & CEO Retiring

    April 17, 2014April 17, 2014

    Some top leadership changes are on the way for Noble Energy–a big energy company with big operations in the Marcellus and Utica Shale region. Current Chairman and CEO Charles Davidson will retire May 1, 2015. Stepping up to the big chair will be David Stover. Stover, currently president and COO, will take on the CEO role in October of this year and (presumably) the chairmanship next May when Davidson retires.

    Here’s the kumbaya press release from Noble announcing everyone loves everyone (and yes, Noble is a company we love and highly respect–we just couldn’t help poking a little fun at the announcement and its gushing tone):
    Read More “Changes at the Top for Noble Energy – Chairman & CEO Retiring”

  • Best of the Rest

    Marcellus & Utica Shale Story Links: Thu, Apr 17, 2014

    April 17, 2014April 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: Thu, Apr 17, 2014”

  • Energy Companies | Fossil Creek | Lease & Royalty Payments | Marshall County | Utica Shale | West Virginia

    Fossil Creek Targets WV Utica Shale, Big Bucks for Leases/Drilling

    April 16, 2014April 16, 2014

    Marcellus Utica ShaleThe Utica Shale “rush” has arrived–in West Virginia. Bedford, TX-based Fossil Creek Ohio (a company we’ve not heard of before today) is signing up Utica Shale leases in Marshall County, WV and says they will begin to sink wells “in the near future.” Fossil Creek President Chris Rowntree declined to say how much the company is paying for lease bonuses and royalties, but he did say it’s more than any other company is paying (which would indicate something north of $7,000 per acre and 20% royalties).

    Also of interest to MDN are the numbers thrown out by Fossil Creek for how much they will spend to drill a single Utica well in WV: $22 million on average. That is a startling number. Most Marcellus wells in the area cost around $7 million to drill. If you spend three times that to drill a Utica well, you better be convinced you’ll get three times the return you would receive from a typical Marcellus well to make it a profitable venture–unless you simply have money to burn. Yes, color us skeptical that anyone will make money by spending $22M to drill a shale well! Here’s more on Fossil Energy and several other companies pursuing the Utica Shale “rush” in the Mountain State…
    Read More “Fossil Creek Targets WV Utica Shale, Big Bucks for Leases/Drilling”

  • Beaver County | Energy Companies | Industrywide Issues | Pennsylvania | Processing Plants | Shell

    Shell Meetings Today in Beaver County, PA on Ethane Cracker Plant

    April 16, 2014April 16, 2014

    Shell is holding two public meetings today at the Shadow Lakes club in Hopewell (Beaver County), PA to discuss the possibility of building a multi-billion dollar ethane cracker plant in Monaca, PA. The meetings, according to Shell, are not an indicator that Shell has decided to move forward with the project. The meetings are, according to Shell, a way for the company to hear concerns from the people who live in the area and would potentially be affected by the plant, and for Shell to share information on where the project stands at this point and what’s ahead. It’s all about good, two-way communication.

    More details about the meetings today, and a brief background on the proposed Shell ethane cracker…
    Read More “Shell Meetings Today in Beaver County, PA on Ethane Cracker Plant”

  • Allegheny County | Meetings | Pennsylvania

    Obama/Biden Pittsburgh Visit Today: Don’t Expect NatGas Praise

    April 16, 2014April 16, 2014

    President Barack H. Obama and Vice President Joe “the clown” Biden are visiting western Pennsylvania today to play Santa Claus–to talk about redistributing a half billion taxpayer dollars from your pockets to the pockets of the staff and students at community colleges–like Community College of Allegheny County West Hills Center in North Fayette where they’ll make a stop. We suppose there could be worse uses for your money–but we believe you know how to best spend your own money. However, we digress.

    Obama and Biden (the oafish Biden turns up simply to make Obama look good by comparison) are visiting the heart of Marcellus drilling country. Those from the gas industry, including Marcellus Shale Coalition president Dave Spigelmyer, are hoping Obama and Biden will at least pay some lip service to the enormous role gas drilling is having for PA’s economy and job picture. We say, don’t hold your breath…
    Read More “Obama/Biden Pittsburgh Visit Today: Don’t Expect NatGas Praise”

  • Hydraulic Fracturing | Industrywide Issues | Research

    EIA Drilling Productivity Report – Marcellus Flirts with 15 Bcf/d

    April 16, 2014April 16, 2014

    The monthly Drilling Productivity Report (DPR) from our favorite government agency, the U.S. Energy Information Administration (EIA) was issued on Monday (see a copy embedded below). It shows that the average daily production from the Marcellus Shale will go up–again–in May. In April average daily Marcellus production was forecast at 14.52 billion cubic feet per day (Bcf/d). In May it will be 14.77 Bcf/d–getting really really close to 15 Bcf/d.

    Since last October when the EIA first started publishing the monthly DPR, Marcellus production has gone up each and every month–with no end in sight. Below is the full report from April, along with screen shots of two charts found on the EIA website but not (yet) in the report. We keep needling them to include these two charts in the PDF of the report…
    Read More “EIA Drilling Productivity Report – Marcellus Flirts with 15 Bcf/d”

  • Economic Impact | Electrical Generation | Industrywide Issues | Jobs | Ohio | Trumbull County

    Clean Energy Plans NatGas Electric Generation Plant in Lordstown

    April 16, 2014April 16, 2014

    Clean Energy Future, a company based in Boston, MA, had a “first date” night Monday in Lordstown (Trumbull County), OH. Clean Energy proposes to build an $800 million electric generation plant on 57 acres on Salt Springs road in Lordstown. The plant will be fired by natural gas from the Utica and Marcellus. Clean Energy was there to talk with town residents and to ask the village board to rezone the area so they can build. About 150 people attended date night to size up Clean Energy and their plan.

    If the board decides to approve the project, construction would begin in December 2015. However, the plant won’t be completed and online until 2018. Yeah, it takes a long time to build these complex plants–which are made all the more necessary and urgent because of President Obama’s war on coal and the EPA’s strict new rules on burning coal. Here’s how the first date went in Lordstown on Monday:
    Read More “Clean Energy Plans NatGas Electric Generation Plant in Lordstown”

  • Forced Pooling | Industrywide Issues | Statewide WV | West Virginia

    Forced Pooling in WV: Dead Issue that Won’t Stay Dead

    April 16, 2014April 16, 2014

    Dead–but won’t stay dead (zombies anyone?). That’s the situation with forced pooling in West Virginia. Two months ago MDN reported that the forced pooling issue had once again died in the regular legislative session (see WV Forced Pooling Bill Dies in Committee, Yet Again). Drilling industry supporters vow that they will make yet another run at introducing and passing a law in the 2015 legislative session to allow forced pooling in the Mountain State. The West Virginia Chamber of Commerce is adding its voice as a supporter of forced pooling. The Chamber has begun a publicity campaign to support forced pooling, complete with a website (www.poolingtogether.com).

    Forced pooling is a contentious issue. A few obstinate and frankly unreasonable holdouts who resist drilling can spoil it for all of their neighbors. However, MDN remains firm in our view that property rights are sacrosanct. You shouldn’t be able to tell me I can’t allow drilling on or under my property–and I shouldn’t be able to tell you that you must allow it. We continue to believe that’s the only defensible position on the issue of forced pooling. West Virginia is one of the few active oil and gas states without a forced pooling law and the drilling industry aims to change that. Here’s more on the dead issue that just won’t stay dead in WV:
    Read More “Forced Pooling in WV: Dead Issue that Won’t Stay Dead”

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