Marcellus Drilling News

BP | Energy Companies | Lease & Royalty Payments | Ohio | Trumbull County | Utica Shale

BP Calls it Quits in the Utica Shale – Total Write-off
April 29, 2014April 29, 2014

A sad day for landowners in Trumbull County, OH. Flashback: In March 2012 BP leased 84,000 acres in Trumbull County, OH from the Associated Landowners of the Ohio Valley (see BP’s Big Utica Shale Deal, Leases 84K Acres in Ohio). Just two years later and what started out with great fanfare is all down the toilet. BP announced today they are pulling out of the Utica Shale and writing it all off. In a very brief mention in a press release issued this morning about first quarter 2014 results, BP says: “Following on from the decision to create a separate BP business around its US lower 48 onshore oil and gas activities, and as a consequence of appraisal results, BP has decided not to proceed with development plans in the Utica shale. The Upstream result includes a write-off relating to the Utica acreage.”

Last November MDN wondered aloud whether BP would decide to move forward, or call it quits (see Decision Point: Will BP Drill Their Utica Acreage? Or Pass?). Now we know. Why leave? As we pointed out at the time, Trumbull County has proven to be mostly dry gas, and not wet gas (or natural gas liquids) which makes it a much less profitable part of the play to drill in. BP rolled the dice and bet wrong. The only other driller in Trumbull has been Halcon Resources. They pulled out too (see Halcon Resources Stops Drilling, Gives Up on the Utica Shale). Is there any hope for future Utica drilling in Trumbull County?…
Read More “BP Calls it Quits in the Utica Shale – Total Write-off”
Boardwalk Pipeline Partners | Energy Services | Industrywide Issues | NGLs | Pipelines | Williams

Williams Stops Work on Bluegrass Pipeline, Boardwalk Says “It’s Not Dead”
April 29, 2014April 29, 2014

Really big news that affects drilling throughout the Marcellus and Utica Shale region: Williams announced yesterday they are suspending work on the Bluegrass Pipeline, a $1.5 billion project that would have piped natural gas liquids (NGLs) from the Utica/Marcellus all the way to Gulf Coast for processing and sale. Looks like we now know who the winner of the “midstream knife fight” is: the Kinder Morgan/MarkWest joint venture UTOPIA pipeline (see “Midstream Knife Fight” – Who Will Have 1st Operational NGL Pipeline to Gulf?). Although Williams says the project is done, their joint venture partner in the Bluegrass, Boardwalk Pipeline Partners, says “it’s not dead.” Really? What does that mean?

Below we have the Williams statement that the Bluegrass is dead, the quote from Boardwalk saying it isn’t dead, and our opinion as to what may have pushed Williams to throw in the towel on this very important project, potentially leaving northeast drillers without options for NGLs…
Read More “Williams Stops Work on Bluegrass Pipeline, Boardwalk Says “It’s Not Dead””
Boardwalk Pipeline Partners | Energy Services | Industrywide Issues | NGLs | Pipelines | Williams

Boardwalk Talks About Bluegrass: That’s My Story and I’m Sticking to It
April 29, 2014April 29, 2014

Yesterday Boardwalk Pipeline Partners held an analyst call to update investors on their first quarter 2014 performance. As we wrote about a few months ago, Boardwalk’s stock fell off a cliff (down 50%) and is just now beginning to inch it’s way back up the cliff (see Serious Concerns about Boardwalk Pipeline Partners Continue). Yesterday’s analyst call coincided with the release of information that both Williams and Boardwalk, together in a joint venture to build the Bluegrass Pipeline, an important northeast to Gulf Coast NGL pipeline, have decided to suspend work on the pipeline. Williams hints that the project is all but dead, but Boardwalk says it isn’t (see our related story today).

We located the transcript of yesterday’s analyst call with Boardwalk and have extracted out all of the places where the Bluegrass was discussed. It’s interesting reading, providing us with a bit more color and context. For us it evokes Collin Raye’s song, “That’s My Story and I’m Sticking to It” as we read the comments by Boardwalk and the press release by Williams. Both partners have obviously decided to script the announcement–both are singing from the same song sheet, as it were. The stated reason they’ve stopped working on the Bluegrass? Not enough customer interest. Which, as we point out in today’s related story, we think is sort of bogus. Here’s what was said yesterday on the Boardwalk call about the Bluegrass suspension…
Read More “Boardwalk Talks About Bluegrass: That’s My Story and I’m Sticking to It”
Ohio | Statewide OH | Utica Shale

Top 10 Oil Wells & Top 10 Gas Wells in Ohio for 4Q13
April 29, 2014April 29, 2014

Contrary to the all-but-silent treatment Utica Shale oil gets, drillers are pumping oil from the Utica. Quite a bit of it, as it turns out. They’re also pumping huge quantities of natural gas.

Last week MDN friend Bob Downing, reporter for the Akron Beacon Journal, did a great analysis of Q413 production numbers. He produced these two lists of “top 10” for oil producing wells and for natgas producing wells…
Read More “Top 10 Oil Wells & Top 10 Gas Wells in Ohio for 4Q13”
Ohio | Statewide OH | Utica Shale

OH Production for 4Q13: Natgas Up 28%, Oil Up 8%
April 29, 2014April 29, 2014

Last week the Ohio Dept. of Natural Resources (ODNR) released it’s now quarterly production report–for fourth quarter 2013. The report shows natural gas production zoomed up by 28% while oil production increased by 8%. The report shows 352 wells were producing as of the end of the year. They produced a collective 1.4 million barrels of oil for the quarter, and 43 billion cubic feet of natural gas.

Below is an overview and analysis of the numbers, followed by the raw report (spreadsheet format) from the ODNR…
Read More “OH Production for 4Q13: Natgas Up 28%, Oil Up 8%”
Blair County | Industrywide Issues | Pennsylvania | Regulation

Altoona Hearing on Latest EPA Outrage: Redefining Clean Water Act
April 29, 2014April 29, 2014

The latest breath-taking power grab attempt by the rogue and out-of-control federal Environmental Protection Agency was highlighted at a Congressional hearing held yesterday in Altoona, PA. The EPA wants to redefine which bodies of water fall under the 1972 Clean Water Act–so that the agency essentially would oversee not only “navigable waterways” but all waterways, usurping states rights in the process. It is, as Congressman Bill Shuster (from PA) said, more evidence of President Obama’s “imperial presidency”–by which he means Obama is grabbing power by force that is not his Constitutionally. The hearing yesterday was an attempt to point out the perils of the EPA’s latest overreach.

Shale drillers clearly understand the implications and at least one attended to voice concerns. According to CONSOL Energy, the new “guidelines” from EPA would add upward of $10 million per natgas pipeline they install due to the delays, paperwork and new hoops they will need to jump through. It is unnecessary and (in our opinion) unconstitutional…
Read More “Altoona Hearing on Latest EPA Outrage: Redefining Clean Water Act”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA | Taxation

Anti-Drilling PA Gov Candidate Allyson Schwartz Spits and Sputters
April 29, 2014April 29, 2014

In a hilarious set of meetings with reporters in Harrisburg, PA, Democrat primary candidate for governor Allyson Schwartz had a spitting and sputtering fest. We truly wish we were there. She repeatedly attempted to lob verbal molotov cocktails at both Republican Gov. Tom Corbett (running for re-election) and at her chief primary rival and fellow anti-driller Tom Wolf. But the verbal bombs she lobbed just wouldn’t go off–and one of them exploded in her own face. At times pleading and at other times scolding, Schwartz essentially begged reporters to criticize Wolf and Corbett on her behalf.

One of those reporters had had enough and asked her: since Tom Corbett has released 10 years of tax returns, why don’t you? Schwartz went nearly apoplectic. How DARE a reporter challenge the Queen Bee!? Her response was, essentially, “good for thee but not for me.” Which is the way anti-drillers like Schwartz always operate, with double standards…
Read More “Anti-Drilling PA Gov Candidate Allyson Schwartz Spits and Sputters”
Erie County | Pennsylvania | Statewide PA

PA Labor Unions Break Ranks with Dems to Support Shale Industry
April 29, 2014April 29, 2014

Organized labor continues to roar its approval for fracking, pipelines and the shale oil and gas industry in Pennsylvania and beyond. Breaking ranks with its own anti-drilling Democrat Party in PA, Laborers International Union of North America (LUNA) with more than 20,000 PA members, wrote an editorial appearing in the Erie Times-News that supports expansion of fracking in PA as opposed to silly moratoriums and more restrictions proposed by the Democrat Party and their candidates for governor on down…
Read More “PA Labor Unions Break Ranks with Dems to Support Shale Industry”
Economic Impact | Industrywide Issues | NGLs | Ohio | Statewide OH | Utica Shale

Northeastern Ohio Benefits from Shale Too, Just Different
April 29, 2014April 29, 2014

There’s not much drilling in the Utica Shale in northeastern Ohio, but that doesn’t mean folks in the northern part of the state don’t benefit (and profit) from it. In fact, many in northern Ohio are downright excited about what’s happening in the state. Why? Because the plastics industry, which uses byproducts from natural gas liquids (NGLs) being extracted in Ohio, is taking off like a rocket, providing jobs, products and an economic bonanza in northern Ohio and indeed throughout the state…
Read More “Northeastern Ohio Benefits from Shale Too, Just Different”
Economic Impact | Industrywide Issues | Jobs | Meetings | Ohio | Utica Shale | Washington County (OH)

Marietta Meeting Highlights Big Economic Impacts from Drilling
April 29, 2014April 29, 2014

Marietta (Washington County), OH residents and business owners had a chance last Friday to hear how the northeast shale boom has already benefited that area, and how the area will benefit in the future. The changes statewide are dramatic. The changes locally are starting to be felt too–and more changes are on the way. Exciting changes…
Read More “Marietta Meeting Highlights Big Economic Impacts from Drilling”
Best of the Rest

Marcellus & Utica Shale Story Links: Tue, Apr 29, 2014
April 29, 2014April 30, 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, Apr 29, 2014”
Energy Companies | Hydraulic Fracturing | Industrywide Issues | Litigation | New York | Norse Energy | Regulation | Statewide NY

Highest Bid for Norse Energy $2.65M – Was it Sold & Who Bid?
April 28, 2014April 28, 2014

On Friday two major stories developed involving Norse Energy. You may recall Norwegian-based Norse Energy rolled the dice and placed all their bets on shale drilling in New York State, leasing some 180,000 acres, of which 130,000 acres are in the Marcellus and/or Utica Shale region. Never in their wildest dreams did Norse believe it would take six years or more for the state to allow high-volume hydraulic fracturing. Things started to go downhill for Norse when landowners sued to say Norse did not have the right to continue the leases indefinitely (beyond five years) because of New York’s tardiness in approving fracking (see New Rough Patch for Norse Energy: Force Majeure Lawsuit). Eventually the state’s ongoing moratorium on fracking led to Norse’s bankruptcy (see Lights Turned Off, Door Closed – Good Night, Norse Energy). Norse sued the state to force it to release fracking regulations so their remaining asset, the leases, could be sold for at least some value to compensate investors (see Norse Energy Sues Gov. Cuomo to Force Release of Fracking Regs).

Here’s where it gets complicated. On Friday in U.S. bankruptcy court, three bids for the leases and other company assets were unsealed. The highest was for $2.65 million–which is pennies on the dollar compared to the value of the company just a year ago before NY’s action forced it into bankruptcy. The New York Post reported the company behind the winning bid was hedge fund Mason Capital. From what MDN is able to determine, that may not be correct. The highest bid was from Any Acquisition, LLC–which may or may not be backed by Mason Capital. More important, there has been no official word that the judge awarded the sale to anyone on Friday. Below we tackle a complex deal-in-the-making and sort it out with help from our friends at NGI’s Shale Daily, who did some proper, old-fashioned reporting and got the real goods…
Read More “Highest Bid for Norse Energy $2.65M – Was it Sold & Who Bid?”
Energy Companies | Hydraulic Fracturing | Industrywide Issues | Litigation | New York | Norse Energy | Regulation | Statewide NY

NY Hearing on JLCNY/Norse Lawsuit v Cuomo, Martens, Shah
April 28, 2014April 28, 2014

On Friday a lower court judge heard testimony in the “Article 78” case brought by Norse Energy and the Joint Landowners Coalition of New York (JLCNY) against Gov. Cuomo, Dept. of Environmental Conservation Commissioner Joe Martens, and State Health Commissioner Nirav Shah–to force the release of new fracking regulations. Sadly, the man who is supposed to work for the residents of New York, Attorney General Eric Schneiderman, decided instead he works for the man-child who can’t make a decision, Andy Cuomo, so he filed a motion to dismiss the Article 78 lawsuit brought by Norse and the JLCNY (see NY AG Schneiderman Files to Dismiss JLCNY Lawsuit Against Cuomo). The judge on Friday held a hearing to consider that motion. Fortunately, the motion to dismiss was not granted. Not yet anyway.

The heart of Friday’s hearing centered on the issue of, “How long is long enough?” for the state to conduct a review and release new drilling regulations. We have quotes from various sources who were there. It was obvious the judge grilled the pro-drilling side harder than the rep from the AG’s office. However, near the end (as you’ll see below), the AG rep shot herself right in the foot and perhaps tilted the chances for the lawsuit to go forward in favor of Norse/JLCNY…
Read More “NY Hearing on JLCNY/Norse Lawsuit v Cuomo, Martens, Shah”
Anti-Drilling/Fossil Fuel | Commodity Price | Hydraulic Fracturing | Industrywide Issues | New York | Research | Statewide NY

Peak Oil/Gas Theorist Art Berman Generates “Study” for NY Ladies
April 28, 2014April 28, 2014

A month ago the New York League of [Liberal Democrat Anti-Drilling] Women Voters hired a consultant that has been so wrong about his theories on “peak oil” he would be laughed out of any room he walks into (see Peak Oil Theorist Art Berman Says Shale Gas is Peaking Too), to pen a new report that says just want the lib ladies want it to say: If drilling were to begin in NY today, nobody would drill here because they couldn’t make money by selling gas at $4-$4.50 per thousand cubic feet.

To which we say–fine. Let’s find out! Cabot Oil & Gas is making money hand over fist in Susquehanna County, PA, just across the border, even with gas as low as $1.50 per Mcf. Let’s see if they can work some of that magic on this side of the border. But of course that’s not what this so-called “study” is about. The study ordered up by the very anti-drilling so-called League of Women Voters is a further attempt to dispirit New Yorkers on shale drilling. For Art Berman, the purpose of the study is to repair his damaged reputation. It does the opposite, providing the final nails. Below we have the press release announcing this latest laughingstock of a “study” from the discredited Art Berman, along with a copy of the 44-page “study” itself…
Read More “Peak Oil/Gas Theorist Art Berman Generates “Study” for NY Ladies”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | New York | Statewide NY

NY Anti-Driller Gets $150K Prize for Environmental Activism
April 28, 2014April 28, 2014

The Goldman Environmental Prize for “grassroots environmental activists” was started years ago by a husband and wife–the Goldman’s–who both attended University of California at Berkeley. Which should tell you all you need to know about the prize. Created by wackos for wackos. So it’s no surprise the foundation awarded this year’s $150,000 prize to a New York wacko–Helen Slottje, a lawyer whose work in New York to get towns to ban fracking is regularly challenged in court and overturned (see NY Judge Throws Out Binghamton Fracking Moratorium and NY Judge Tosses Out Sidney Moratorium Law for Procedural Issues).

But hey–it’s Helen’s “good intentions” that count. And her good intentions are to deny 70,000+ landowners in New York their sovereign property rights to allow shale drilling. Give her an award! (As an aside: MDN heard Helen Slottje in person several years ago when charlatan and then-Mayor of Dish, TX, Calvin Tillman, spoke in Binghamton–see DISH, Texas Mayor Calvin Tillman Visits Binghamton – Marcellus Drilling News was There). Slottje was part of Tillman’s traveling circus act. Let’s just say we were less than impressed with Slottje’s presentation.) Helen is in wacko mecca–San Francisco–today, to pick up her check for $150K. That ought to help her to keep making mischief in NY for a few more years. Although we can always hope she likes it in wacko paradise and decides to stay there…
Read More “NY Anti-Driller Gets $150K Prize for Environmental Activism”
Anti-Drilling/Fossil Fuel | Coterra Energy (Cabot O&G) | Education | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Susquehanna County

Retired J-School Prof Says Lackawanna College a Shale Prostitute
April 28, 2014April 28, 2014

A old hippie retread that fancies himself as a journalist (he’s a retired professor of mass communications) has the unmitigated gall to call Lackawanna College a “prostitute” for accepting a $2.5 million endowment from Cabot Oil & Gas (see Cabot Oil & Gas Does it Again – $2.5 Million Gift to Lackawanna College). This same retired prof–Walter M. Brasch–calls the woman who is the voice in this video a “peaceful grandmother” that Cabot tried to hush up. In other words, he’s clueless. Is it any wonder the so-called reporters we have these days are inept, when taught by people like Brasch?

Back to the good prof and his bloviating: We wonder, Prof. Brasch, the $4.4 million Cabot helped raise for a rural hospital–a project on the books for decades and going nowhere until Cabot stepped in (see Cabot Effort Raises $4.4 Million for PA Physicians Clinic)–does Cabot’s money make the hospital a prostitute too? Would it have been better to not build the new hospital? What if the Heinz Endowments, an anti-drilling non-profit backed by lib idol Teresa Heinz Kerry had given money to Lackawanna College or the hospital? Would they still be prostitutes by accepting her money? And what about NY anti-drilling crusader Helen Slottje–in wacko San Fransciso today (see our story) to receive a $150,000 award from the Goldman Foundation. She’s getting it for trying to ban fracking in NY. Does that award make her a prostitute? Why not? If the shoe fits…
Read More “Retired J-School Prof Says Lackawanna College a Shale Prostitute”