Marcellus Drilling News

Hydraulic Fracturing | Industrywide Issues | Litigation | New York | Regulation | Statewide NY

NY AG Schneiderman Files to Dismiss JLCNY Lawsuit Against Cuomo
April 2, 2014April 2, 2014

In early March MDN told you the sad news that New York’s own Attorney General, Eric Schneiderman, is actively working against the residents of the state of New York by filing to dismiss a lawsuit brought by Norse Energy that would force Gov. Andrew Cuomo, DEC Commissioner Joe Martens and State Health Commissioner Nirav Shah to do their jobs and release new drilling regulations (see NY Attorney General Files to Dismiss Norse Lawsuit, More Delays). The 70,000-member Joint Landowners Coalition of New York also filed an “Article 78” lawsuit, similar to the Norse lawsuit.

NGI’s Shale Daily is reporting that AG Schneiderman’s office has now filed a motion to dismiss this second lawsuit–fantastically claiming the JLCNY, which represents more than 70,000 New York landowners who want to see drilling commence, has “no standing.” Talk about chutzpah. Here’s the latest on the dysfunctional mess that is called New York State:
Read More “NY AG Schneiderman Files to Dismiss JLCNY Lawsuit Against Cuomo”
Energy Services | Industrywide Issues | Pipelines | Williams

Duke Energy & Piedmont NatGas Want New Marcellus Gas Pipeline
April 2, 2014April 2, 2014

Duke Energy, headquartered in Charlotte, NC, is the largest electric power holding company in the U.S. with a number of electrical generating plants in the southeast. Piedmont Natural Gas is a utility company delivering natural gas to more than one million residential, commercial and industrial customers throughout NC, SC and TN. The two companies have something in common: a desire to use cheap, abundant natural gas from the Marcellus Shale. Duke wants it to power its electric generating plants. Piedmont wants it to deliver to customers like Duke and others. The two announced yesterday they want it so bad they’re willing to together invest in a new natural gas pipeline to bring it into NC.

Williams is currently in the midst of a multi-year project to expand and extend the Transco pipeline into NC to, in part, Piedmont Natural Gas. The Transco Virginia Southside Expansion project is approximately 100 miles of new 24-inch diameter pipeline extending from the Transco mainline in Pittsylvania County, VA into Halifax, Charlotte, Mecklenburg, and terminate in Brunswick County, VA. The interesting thing (to MDN) is that Duke and Piedmont specifically say they want a new/different/second pipeline to be built. Apparently they’re not happy with a single source (from Williams) and want a little more competition in the region–so the two companies jointly announced yesterday they’re shopping for midstreamers willing to build a second pipeline to flow Marcellus gas…
Read More “Duke Energy & Piedmont NatGas Want New Marcellus Gas Pipeline”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues

8 Servile Congressman Obey Anti-Fracking Masters, Sign Ltr to EPA
April 2, 2014April 2, 2014

Here we go again. Out of ideas and running out of money, a bunch of loony toon organizations like 350.org and the odious Food & Water Watch need a new fundraiser. What to do…what to do? We know! Get a few anti-drilling lackeys Congressman (every one of the a Democrat) on your political contribution payroll to sign a letter to the EPA asking them to re-open three cases both the EPA and state agencies have already investigated to death for years: Dimock (PA), Pavillion (WY) and Parker County (TX). Make some more wild claims that fracking pollutes water supplies–even though it doesn’t. And, voilà! A new fundraising campaign is born.

And so the brain trust at Americans Against Fracking (AAF) has done just that. So worn out and bankrupt for new ideas, AAF has to pathetically, once again, attempt to make an issue of a dead issue. Here’s the latest fundraiser from enviro-snobs at AAF, along with the political patronage letter to the EPA obediently signed by eight servile Democrat Congressmen:
Read More “8 Servile Congressman Obey Anti-Fracking Masters, Sign Ltr to EPA”
Anti-Drilling/Fossil Fuel | Athens County | Industrywide Issues | Litigation | Ohio | Wastewater

Athens County Anti-Frackers Continue to Fight Injection Well
April 2, 2014April 2, 2014

In January, MDN told you that a group of anti-drilling nutters in Athens County, OH had sued to try and stop a new, second injection well from being drilled by K&H Partners at the same site where there is currently an operational injection well (see Athens County, OH Anti-Drillers Sue to Stop New Injection Well). The Athens County Fracking Action Network (ACFAN) objected to the Ohio Dept. of Natural Resources (ODNR) decision to issue a permit for the new, second injection well.

ACFAN is continuing their legal challenge. The group has filed a new complaint against the ODNR saying the ODNR has not been forthcoming with certain public records sought by ACFAN as part of their original lawsuit. In other words, ACFAN is trying to abuse the law to slow down, delay and kill a legitimate and legal business from doing business in Athens County, OH. But then, that’s how petulant children who grow up to be petulant adults behave…
Read More “Athens County Anti-Frackers Continue to Fight Injection Well”
Hydraulic Fracturing | Industrywide Issues | Litigation | Pennsylvania | Regulation | Statewide PA | Taxation

Dangerous Economic Road Ahead for PA if Shale Economy is Topedoed
April 2, 2014April 2, 2014

In a letter to the editor published (amazingly) in the Pittsburgh Post-Gazette, Consumer Energy Alliance Mid-Atlantic executive director Mike Butler points out, in just a few paragraphs, the grave danger now hovering over Pennsylvania because of the PA Supreme Court’s poor decision to side with seven selfish towns to overturn important and large portions of the Act 13 law, and in danger from PA Democrats who want to stop all future Marcellus drilling in the state with an ongoing moratorium.

Pennsylvania is at a crossroads and if her citizens choose poorly in the next election, they risk plunging the state into an economic disaster, as eloquently pointed out by Mr. Butler:
Read More “Dangerous Economic Road Ahead for PA if Shale Economy is Topedoed”
Air Quality | Chesapeake Energy | Energy Companies | Exxon Mobil | Industrywide Issues | Regulation | Ultra Petroleum

Rogue Obama EPA Goes on Methane Witch Hunt
April 2, 2014April 2, 2014

The recent Climate Action Plan to cut methane emissions emitted by the White House last week contains this ominous bullet point: “EPA will assess several potentially significant sources of methane and other emissions from the oil and gas sector. EPA will solicit input from independent experts through a series of technical white papers, and in the fall of 2014, EPA will determine how best to pursue further methane reductions from these sources.”(1) The good news is that the overbearing, out-of-control actions by the Obama EPA will only apply to drilling on federal lands. The bad news is that they will try to bully individual states to adopt the same new onerous regulations, thereby making federal regulations de facto in many locations.

Will the EPA methane witch hunt affect the Marcellus and Utica region? Too early to tell whether PA, OH and WV will cave to Obama EPA pressure. Here’s an analysis of how onerous new regulations may affect several drillers with major operations in the Marcellus…
Read More “Rogue Obama EPA Goes on Methane Witch Hunt”
Exporting | Industrywide Issues | Pipelines

Fox Business Energy Expert Talks Storage, Pipelines & LNG Exports
April 2, 2014April 2, 2014

HardAssetsInvestor (HAI) recently interviewed Phil Flynn, a senior energy analyst and a futures account executive at Chicago-based The Price Futures Group. Phil is one of the world’s leading energy market analysts and a daily contributor to the Fox Business Network. The interview ranges from speculation on what the price of natural gas will do in the short term and over the next few years, storage levels, lack of pipeline infrastructure in the Marcellus, and a refreshingly frank look at LNG exports.

We enjoyed reading the HAI interview with Phil and thought you would too…
Read More “Fox Business Energy Expert Talks Storage, Pipelines & LNG Exports”
Best of the Rest

Marcellus & Utica Shale Story Links: Wed, Apr 2, 2014
April 2, 2014April 2, 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, Apr 2, 2014”
Crime | Industrywide Issues | Mahoning County | Ohio | Wastewater

3rd Person Charged in Youngstown Frack Wastewater Dumping Case
April 1, 2014April 1, 2014

Just when you thought there was a conclusion to the story of Ben Lupo and Hardrock Excavating and the dumping of frack wastewater down a drain that eventually emptied into the Mahoning River–the story takes a new turn. MDN previously told you that Hardrock’s owner, Ben Lupo, changed his plea to guilty last week (see Ben Lupo Admits Guilt in OH Frack Wastewater Dumping, Prison Next?). Previously one of his employees, Michael Guesman, a truck driver, plead guilty (see Youngstown, OH Illegal Wastewater Dumping Happened “At Least” 24X).

Apparently Guesman was the second employee Lupo wrangled into doing his illegal bidding. What has just come to light is there was a first employee illegally dumping the month prior to Guesman. The first employee has now been charged…
Read More “3rd Person Charged in Youngstown Frack Wastewater Dumping Case”
Energy Companies | Forced Pooling | Hilcorp Energy | Industrywide Issues | Lawrence County | Pennsylvania | Regulation

New Hearing Dates for Hilcorp’s Forced Pooling Request in PA
April 1, 2014April 1, 2014

Last October MDN told you about Hilcorp’s request to force some Pennsylvania landowners in Lawrence County, PA to allow Hilcorp to drill under (not on) their property in the Utica Shale layer (see Hilcorp Uses PA Forced Pooling Law Against Lawrence Cty Landowner). After much tooing and froing, the PA courts told the Dept. of Environmental Protection (DEP) that the DEP would need to make the decision (see Ironic: PA Enviro Court Forcing DEP to Rule on Forced Pooling). The DEP set a public hearing for March 25 & 26 in Lawrence County, and then postponed it (see Hilcorp Forced Pooling Hearing Postponed, More Landowners Added).

We finally have final final final hearing dates from the DEP–May 7 & 8. Here’s the lowdown from the DEP, in which they say the hearings will be conducted “like a trial”…
Read More “New Hearing Dates for Hilcorp’s Forced Pooling Request in PA”
Lease & Royalty Payments | Pennsylvania | Statewide PA

PA’s “Secret” Deal to Lease Land Under Rivers & Streams (Gasp!)
April 1, 2014April 1, 2014

Pssst. We need to whisper this news, because no one is supposed to know. Those nefarious Republicans in Harrisburg, PA have been (gasp) leasing land underneath rivers and streams to those nasty, evil shale drillers–shameless Republican mooks. And such leasing has brought in $5.9 million into the coffers of the state for politicians to redistribute.

So says the reliably anti-drilling StateImpact Pennsylvania–which is really just a couple of NPR reporters that issue their anti-drilling views via a website. The state, since 2012, has leased more than 1,000 acres under rivers and streams for $4,000 per acre signing bonus, and when/if drilling happens, 20% royalties. Pretty darned good deal if you ask us. So has Gov. Tom Corbett been hushing this up, keeping it a secret?…
Read More “PA’s “Secret” Deal to Lease Land Under Rivers & Streams (Gasp!)”
Economic Impact | Industrywide Issues | Jobs | Ohio | Pipelines | Processing Plants | Statewide OH | Supply Chain | Utica Shale

New List of Shale-Related Infrastructure/Economic Projects in OH
April 1, 2014April 1, 2014

Researchers with the Ohio energy law firm of Bricker & Eckler LLP have done us all a huge favor. They have assembled a really cool list infrastructure and business projects county by county in Ohio that are known or rumored–all related to the Utica/Marcellus Shale industry. The list (full copy embedded below) lists the county where the project is occurring, the company(s) involved, a brief description of the project and if known, the projected amount of investment.

Workers looking for jobs, businesses that want to get a piece of the action (supply chain), competitors and more will want to review this awesome list. Yes, it does bear a passing resemblance to our own list of infrastructure projects in Vol. 2 of the Marcellus and Utica Shale Databook. Some of the same projects are listed. However, Bricker & Eckler’s list is specific to Ohio and includes many smaller non-pipeline related projects. Kudos to them for producing a great report…
Read More “New List of Shale-Related Infrastructure/Economic Projects in OH”
Anti-Drilling/Fossil Fuel | Athens County | Crime | Industrywide Issues | Ohio

“Athens 8” Criminal Protesters Receive Slap on Wrist by OH Court
April 1, 2014April 1, 2014

Eight loud, obnoxious and anything-but-peaceful protesters were arrested in February near Athens, OH for trespassing and illegally blocking the entrance to an injection well site (see Break the Law in OH, Get an Award – Anti-Drilling Nuttery on Display). The eight alleged criminals–charged with criminal trespass–have successfully pleaded their crimes down to disorderly conduct and let go with a slap on the wrist by an Ohio court.

One of the protesters, a “sustainable” organic farmer, Gilbert (Kip) Rondy, someone who operates “unheated greenhouses” (apparently that’s a badge of honor instead of a sanity test), read a statement to the judge that attempts to excuse his and the other protesters’ lawless actions by saying they had to do it to protect Mother Earth. This one will give you a chuckle like it did us…
Read More ““Athens 8” Criminal Protesters Receive Slap on Wrist by OH Court”
Energy Services | GreenHunter Resources | Industrywide Issues | Regulation | Wastewater

ORSANCO Ready to Monitor Ohio River for Barge Frack Waste Spills
April 1, 2014April 1, 2014

The Ohio River Valley Sanitation Commission (ORSANCO), an interstate commission representing eights states and the federal government, was set up in 1948 to monitor, issue warnings about and correct pollution issues in the Ohio River. In particular, ORSANCO handles spills from barges or boats using the mighty Ohio. According to Jerry Schulte, manager of source water protection and spokesman for ORSANCO, the organization is up to the task of protecting the Ohio from any accidents that may include barge shipments of frack wastewater.

Not only are they up to the task, ORSANCO believes the Coast Guard is now very close to allowing it, and ORSANCO is ready…
Read More “ORSANCO Ready to Monitor Ohio River for Barge Frack Waste Spills”
Butler County | Energy Companies | Pennsylvania | Rex Energy

Rex Predicts Record 1Q14 Production, Bank Floats Extra $50M
April 1, 2014April 1, 2014

Rex Energy’s banker apparently likes what it sees in the State College, PA-based Marcellus/Utica driller, so they’ve decided to raise Rex’s line of credit another $50 million (from $325 million to $350 million). And what’s not to like? Rex reported last week that they expect first quarter production to come in near the high end of their previous guidance numbers–close to the 118 million cubic feet per day number. Last week Rex also announced they’re adding a second drilling rig in their Butler, PA operation–and (most exciting to us) they’re drilling two stacked Upper Devonian Burkett/Marcellus tests in 2014, one of them with the new rig they’ve just added.

Here’s a pair of announcements from Rex, the operational update from last week and the good news from Rex’s banker from yesterday…
Read More “Rex Predicts Record 1Q14 Production, Bank Floats Extra $50M”
Energy Services | GreenHunter Resources

GreenHunter 2013: Revenues Up, Losses Down, Year of Transition
April 1, 2014April 1, 2014

GreenHunter Resources, the wastewater subsidiary of Magnum Hunter Resources, released their fourth quarter and full year 2013 update yesterday. The company reports revenues were up, losses were down, and they experienced “substantial growth” and “transition” in 2013.

Here’s the update:
Read More “GreenHunter 2013: Revenues Up, Losses Down, Year of Transition”