Marcellus Drilling News

Anti-Drilling/Fossil Fuel | Industrywide Issues | Landfills | New York | Regulation | Statewide NY

NY Dem Senators Want to Ban PA Drill Cuttings from NY Landfills
May 14, 2014May 14, 2014

Not only do the anti-drilling Democrats in in the New York Senate want to keep shale drilling banned in the state (lack of drilling is destroying the upstate economy), now they also want to ban drill cuttings (leftover rock and dirt) from Pennsylvania from coming into the state for disposal in NY landfills. This has real implications. Currently, we’re aware of at least one landfill–in Chemung County–that accepts safe drill cuttings (see Radiation Testing Shows Marcellus Shale Drill Cuttings are Safe for Chemung County, NY Landfill). According to the Chemung County Executive Tom Santulli, “a lot of landfills” in upstate NY accept drill cuttings. The landfilling of drill cuttings (mined before fracking takes place and perfectly safe–it’s dirt and rock for heaven’s sake!) benefits all county residents by keeping landfill operating costs lower than they otherwise would be.

Now the radical, vicious anti-drilling Dems in the Senate want to take even that meager revenue away from upstate communities. The only conclusion you can draw is that they intentionally want to harm the residents of upstate NY…
Read More “NY Dem Senators Want to Ban PA Drill Cuttings from NY Landfills”
Energy Companies | Rice Energy

Rice Energy 1Q14: 41 Wells Online Producing 209 Mmcf/d Average
May 14, 2014May 14, 2014

Rice Energy, one of the newest Marcellus/Utica drillers, issued their first quarter 2014 financial and operational update yesterday. Rice, you may recall, went public and issued stocks in January of this year, raising $924 million (see Rice Energy IPO Soars, Brings in $84M More Than Expected). Looks like they put it to good use.

In 1Q14 Rice produced an average 209 million cubic feet of natural gas per day–a 135% increase over 1Q13 and a 36% increase over the previous quarter (4Q13). Impressive, especially when you consider the company has only has 41 wells online and producing since it began in 2011. Below is yesterday’s update from Rice, along with the official company PowerPoint (lots of interesting slides) issued by Rice in April…
Read More “Rice Energy 1Q14: 41 Wells Online Producing 209 Mmcf/d Average”
Anti-Drilling/Fossil Fuel | CNG/LNG | Exporting | Industrywide Issues

OH Sen. Brown, 21 Others Send Anti-LNG Export Letter to Obama
May 14, 2014May 14, 2014

Some 21 Democrat U.S. Senators and 1 RINO Republican (Susan Collins from Maine) signed a letter to President Obama on Monday asking him to hold up on exporting LNG because, they claim, it will lead to higher natural gas prices here at home. Such loving, caring people those Democrats–always concerned for “the little guy.” What utter horse manure. The entire lot of them, including the shameful Ohio Senator Sherrod Brown are either stupid or (more likely) have an ulterior political motive–something that involves money and perhaps kickbacks to their campaign coffers. What else can explain such collective lunacy by Democrats and Democrat-lite Collins?

Below is the press release from the shameful OH Sen. Sherrod Brown, a copy of the letter sent by this cabal, and the entire list of who signed…
Read More “OH Sen. Brown, 21 Others Send Anti-LNG Export Letter to Obama”
Delaware County (PA) | Energy Services | Industrywide Issues | Litigation | Lycoming County | Pennsylvania | PVR Midstream

Happy Ending? ULS Awarded $24.3M from PVR for Unpaid Invoices
May 14, 2014May 14, 2014

In March MDN brought you the story that Utility Line Services Inc. (ULS), a construction company that works for utility companies–like digging trenches and laying pipeline–sued PVR Marcellus Gas Gathering in a Delaware County, PA court (see ULS Says PVR Marcellus Bankrupted Their Company by Not Paying). ULS says PVR owes them more than $17.7 million in unpaid invoices and another $7.8 million in lost profits–and that the unpaid invoices caused the company to declare bankruptcy, closing their doors. A sad story.

Good news (?) for ULS. In what is believed to be the biggest jury award of its kind in PA, the court ruled in favor of ULS and awarded them $24.3 million to be paid by PVR. The problem remains that ULS had to go out of business and 600 jobs were lost and they had to liquidate their equipment. So although this is good news, it’s small consolation after the company had to declare bankruptcy…
Read More “Happy Ending? ULS Awarded $24.3M from PVR for Unpaid Invoices”
Industrywide Issues | Pennsylvania | Pipelines | Statewide PA

US Senators Join Chorus: “Illegal” Steel Pipe Dumping by S Korea
May 14, 2014May 14, 2014

On Monday MDN reported that the chairman of the Pennsylvania Public Utility Commission, Robert F. Powelson, was up in arms over what he considers to be the illegal dumping of steel pipes by South Korea in the U.S. (see New Issue: Ban Use of Cheap/Imported Steel Pipes in PA Marcellus?). Many (most?) of those steel pipes are being used by the shale drilling industry across the country, including (presumably) in the Marcellus/Utica region.

Powelson is not the only person to voice a concern. Now, liberal Democrat Senator Sherrod Brown (Ohio) and conservative Republican Senator Jeff Sessions (Alabama) have joined the chorus. Citing a new report that says illegal dumping of steel pipes threatens a half million U.S. jobs, Brown and Session are pushing U.S. trade officials to remove an exemption on steel imports for South Korea…
Read More “US Senators Join Chorus: “Illegal” Steel Pipe Dumping by S Korea”
Anti-Drilling/Fossil Fuel | Industrywide Issues

Latest Earthjustice Scam: “Clean Air” Petition Signed by 64 People
May 14, 2014May 14, 2014

Here’s a scam for you. If you’re an anti-driller, make up a hokey name like Berks Gas Truth, Riverkeeper, Catskill Mountain Keeper, or Breathe Easy Susquehanna County–claim it’s a huge, many-membered group (when it has half a dozen or less active members), and then be used by a small group of fanatical lawyers in Washington, DC calling themselves Earthjustice to claim “64 environmental and community groups” are “demanding” the federal government, via the EPA, should illegally usurp individual state’s rights and begin regulating the oil and gas industry by the back door–using the Federal Clean Air Act. Which is just what Earthjustice is claiming with its latest publicity stunt. The radical (and small) Earthjustice has prepared a proposed rulemaking petition for the federal EPA and used their loosely affiliated lackeys in the aforementioned “groups” (64 in all) to “sign” the “petition”. And news outlets like the Pittsburgh Post-Gazette fell for it hook, line and sinker, reporting it as real news when it’s nothing more than yet another propaganda play.

When was the last time a group like Earthjustice organized a 3,000-member rally against drilling like was recently held by pro-drillers in Harrisburg, PA (see First-Hand Account of History-Making PA Energy Rally). What’s that…Never? That would be correct. Below is the so-called petition written by a few lawyers in DC, signed by a few devoted anti-drillers from the hinterlands, and packaged as a “movement” of gazillions of people rising up with pitchforks in hand to demand “clean air.” Plueeze…
Read More “Latest Earthjustice Scam: “Clean Air” Petition Signed by 64 People”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania | Statewide PA | Trucking

PPG Says Drilling is Killing PA Residents – via Traffic Accidents
May 14, 2014May 14, 2014

We’re not exactly sure when the Pittsburgh Post-Gazette turned anti-drilling. We’ve previously theorized that perhaps the drilling industry is throwing more advertising money to their arch-competitor, the Pittsburgh Tribune-Review, and so the PPG’s strange turn to anti-drilling is either sour grapes, pay-back, or an elaborate shake down to get more ad revenue. However, one thing is for sure, the editors at the PPG don’t like drilling, as evidenced by the increasing number of negative articles and editorials they write about the industry. When they hired reporter Anya Litvak away from the Pittsburgh Business Times last year we were thrilled. After a few initial stories–they’ve all but hidden her talents away. We haven’t spotted an Anya story on shale in months.

Perhaps Pittsburgh-area residents should cancel their subscriptions to the PPG in protest? Here’s the latest editorial by the PPG that asserts “drilling will kill you because of traffic accidents” …
Read More “PPG Says Drilling is Killing PA Residents – via Traffic Accidents”
About MDN | Bradford County | MDN Sponsor | Pennsylvania | Tioga County (PA)

71 Acres of Marcellus/Utica Land in NE PA Goes to Auction June 12
May 14, 2014May 14, 2014

United Country Real Estate is back with their third auction of prime Marcellus/Utica real estate–this time located in Bradford and Tioga Counties, PA. Last October United Country had the foresight to advertise on MDN for their first Marcellus land auction (see 435 Acres of Marcellus Land in NE PA Goes to Auction Oct 30). That one went so well, they advertised a second auction in Tioga County, PA in March of this year. Now, they’re back again! (We thank them kindly.)

Below are the details for properties that will be auctioned on June 12. The three properties total roughly 71 acres and include a home and oil, gas and mineral rights. Click on the ad along the right or use the link below to find out more…
Read More “71 Acres of Marcellus/Utica Land in NE PA Goes to Auction June 12”
Best of the Rest

Marcellus & Utica Shale Story Links: Wed, May 14, 2014
May 14, 2014May 14, 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: Wed, May 14, 2014”
Energy Companies | Industrywide Issues | Litigation | Pennsylvania | Range Resources Corp | Washington County

Range Resources Finally Wins Case to Drill 2 Wells in Robinson Twp
May 13, 2014May 13, 2014

A surprising victory for Range Resources in a court case against Robinson Township (Washington County), PA. Robinson is one of the seven selfish towns that sued the state and eventually got large portions of the Act 13 law overturned–potentially screwing all townships out of impact fee money throughout the state. The court case between Range and Robinson is over Robinson’s decision to block permits and drilling at two proposed wells Range wanted to begin drilling back in 2012. Range won the right to proceed, in a decision by Judge John DiSalle.

The surprise is because Judge DiSalle is married to a very active and vocal anti-driller and the judge is known for a string of anti-drilling decisions in the past (see Washington County, PA Judge Continues Anti-Drilling Decisions). Based on yesterday’s decison by DiSalle, Range is free to begin drilling as early as today, if they want to. We predict Judge DiSalle will get the cold shoulder from the misses at home for a while…
Read More “Range Resources Finally Wins Case to Drill 2 Wells in Robinson Twp”
Accidents | Energy Companies | Industrywide Issues | Morgan County | Ohio | PDC Energy | Utica Shale

PDC Accident: Drilling Mud Spills into Creek in Morgan County, OH
May 13, 2014May 13, 2014

In the hubbub of news that comes from Utica Shale drilling in eastern Ohio, one county we don’t hear much about is Morgan County (southeast part of the state, below Muskingum County and left of Noble County). So it was with interest we noted last November that PDC Energy was issued permits to drill three wells in Morgan County (see Morgan County, OH Looks to Join the Utica Shale Well Club). The drilling has been under way and we didn’t know it! Except now.

Last week there was a “mishap” at the drill site for one of the wells and about 140 barrels of drilling mud spilled at the site (something like 5,800 gallons). Around 100 barrels of the semi-liquid mud was contained on the drill pad, but about 40 barrels spilled into a nearby creek where it was contained. Apparently PDC hit a pocket of gas which escaped and forced the mud out of the hole faster than they could contain it. The Ohio Dept. of Natural Resources is now investigating to determine whether PDC can move forward with drilling or will need to plug that well and abandon it. Here’s what we know at the moment…
Read More “PDC Accident: Drilling Mud Spills into Creek in Morgan County, OH”
Energy Companies | Seneca Resources

Corporate Raider Pressures National Fuel Gas to Sell Seneca Res.
May 13, 2014May 13, 2014

MDN loves capitalism–the BEST economic system ever devised by humans, benefiting the most people and lifting more out of poverty than any other system in the world. Capitalism is the free market making its own decisions about where, and how, to invest. But there are downsides. One of the negatives with capitalism–in the U.S. version of it anyway–is putting up with loathsome corporate raiders. Corporate raiders buy up enough shares in a publicly traded company to force that company to sell off assets and slash employees in order to drive the price of the stock up so they can turn around and sell their shares at a huge profit. Think of the snake Carl Icahn and what he’s done to Chesapeake Energy (via his toady Doug Lawler). The media today has euphemistically renamed what they used to call corporate raiders to “activist investors.” Same thing with the same end result.

So we were sad to see that a corporate raider is now targeting National Fuel Gas (NFG), the Buffalo, NY-based utility company that also owns a sizable Marcellus drilling division called Seneca Resources. Corporate raider Mario Gabelli has snapped up 9.1% of NFG’s stock, and now he’s making noise about forcing the company to sell off Seneca Resources, which he thinks will raise the stock by another $25/share–from the current $75 to around $100/share–making him even richer than he is now. We think corporate raiders are a cancer on the oil and gas industry. Here’s more about Gabelli pressuring NFG…
Read More “Corporate Raider Pressures National Fuel Gas to Sell Seneca Res.”
Access Midstream Partners | American Energy Partners | Chesapeake Energy | Energy Companies | Energy Services | Industrywide Issues | Ohio | Processing Plants | Statewide OH | Utica Shale

Access Midstream: Major Expansion of Utica Processing Facility
May 13, 2014May 13, 2014

Seems like Chesapeake Energy and its old subsidiaries can’t get enough of…Aubrey McClendon?! MDN told you in April that Cheapeake Energy is leasing some of its rigs to its former CEO, Aubrey McClendon, for drilling in the Utica Shale (see Aubrey McClendon Leases Rigs from Chesapeake to Drill in the Utica). Yesterday came word that Access Midstream (used be called Chesapeake Midstream before Chessy spun it off into its own company) is planning a major expansion of its Utica East Ohio natgas processing facility in eastern Ohio. Why? Three existing customers need more capacity–but also because they’ve picked up a brand new long-term, VIP customer. Can you guess who it is?

Here’s the press release from Access about the coming expansion of UEO which will give them a capacity to process 1.1 billion cubic feet per day of natural gas…
Read More “Access Midstream: Major Expansion of Utica Processing Facility”
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”