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    Lawyer for NEPA Anti-Driller Vera Scroggins Tries Legal Maneuver

    A lawyer for little-known (outside of northeast Pennsylvania) anti-driller Vera Scroggins was in court in Susquehanna County earlier this week trying out the latest legal maneuver. Anti-drilling lawyer Gerald Kinchy–from Sayre, PA–was trying to sucker Judge Kenneth Seamans into “joining” landowners leased with Cabot Oil & Gas to the lawsuit. That is, the lawyer wants the court to treat landowners the same way it’s treating Vera–consider them as trespassing on their own land. Sound like convoluted legal fleecing? Well, that’s exactly what it is. And the judge wasn’t having any of it.

    The whole thing got started when Vera started trespassing at Cabot Oil & Gas drilling sites, taking busloads of fellow anti-drillers around to point and gawk and claim Cabot was polluting Mother Earth. Cabot finally had enough and got the court to place a restraining order on her–for her own and others’ safety (see NE PA Anti-Driller Slapped with Trespassing Injunction). Since the restraining order disallowed Vera from stepping foot on any property leased by Cabot, it prevented her from visiting her favorite grocery store, among other things. So at Cabot’s request, the judge eased the restrictions just a bit (see Judge Lets PA Anti-Driller Sip More Lattes, Attorney Claims “Big Win”). She’s still banned from active drill sites, and that apparently irritates Vera. So she got the ACLU to take up her cause and defend her. Now, her lawyer from Sayre is trying to pollute the case before it goes to trial in June (maybe having second thoughts?)…
    Read More “Lawyer for NEPA Anti-Driller Vera Scroggins Tries Legal Maneuver”

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    OH Repubs Sell Out on Severance Tax, Kasich Wants Even More!

    As we predicted, Ohio Republicans caved and voted a high severance tax out of committee on Wednesday (see Bend Over Ohio – You’re About to Get a Frack Tax). The Republicans think it’s fine to steal money from one industry to give away to people who didn’t earn it. The Democrats are even worse. But here’s the funny thing. Ole’ Gov. John “foreigner hunter” Kasich isn’t satisfied with the Republican plan to raise the rate to 2.5%. He wants more (more more more!).

    Since the Repubs have already bent over once, will they do it again for Kasich?…
    Read More “OH Repubs Sell Out on Severance Tax, Kasich Wants Even More!”

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    Murrysville Turns Down Millions for Park Lease, Looks to Tighten Regs

    Final answer: No. Murrysville (Westmoreland County), PA Council voted to turn down millions of dollars to lease the 262-acre Murrysville Community Park for drilling under (not on) the park for shale gas. Huntley & Huntley–a company that often works as a land agent for Range Resources–has been courting Murrysville for nearly a year now (see Murrysville Park Lease to be Discussed at Meeting). In the end, it seems there just wasn’t enough support from residents to go forward. Guess they don’t need an extra pile of cash in Murrysville. They have enough, thanks.

    Now, on to more pressing matters for the council–like crafting new zoning laws that make it hard to drill anywhere within the township…
    Read More “Murrysville Turns Down Millions for Park Lease, Looks to Tighten Regs”

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    Anti-Drillers File Complaint with SEC re Cove Point LNG Facility

    Even though they’ve lost, the obstinate and unreasonable (not able to be reasoned with) people at Earthjustice and the Chesapeake Climate Action Network (CCAN) are once again trying to prevent the inevitable–the Cove Point, Maryland LNG export facility. Dominion is the company building the new LNG export facility at Cove Point. On the eve of Dominion’s annual shareholder meeting, Earthjustice and CCAN attempted a publicity stunt by filing a complaint with the Securities and Exchange Commission saying that Dominion has not provided adequate disclosure of financial and environmental risks in their plans to build the new $2 billion facility.

    It’s just one more lame attempt by the same small group of virulent anti-drillers plus a ninny nanny anti-drilling investor from Trillium Asset Management (don’t ever invest money with Trillium) to stop progress…
    Read More “Anti-Drillers File Complaint with SEC re Cove Point LNG Facility”

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    Gulfport Energy 1Q14: New CEO Tweaking the Utica Program

    Gulfport Energy is a major driller in the Utica Shale. In a first quarter 2014 update released earlier this week, we learn that Gulfport has added more acreage to their Utica portfolio–they now stand at 180,000 acres of leased land. Although several other drillers own more acreage, Gulfport has drilled the second highest number of Utica wells to date. They currently are operating seven drilling rigs in the Utica Shale. Gulfport’s brand new CEO, Michael Moore, makes the comment that, “a more measured, methodical approach to the development program in the Utica was needed.” We’re not exactly sure what that means, but Moore intends it to mean they’ll get more gas and liquids from the Utica wells their drilling.

    Below are a few brief sections from the 1Q14 update. We also found and posted Gulfport’s PowerPoint used during their recent analyst call. There’s an extensive section on their Utica operations with lots of maps and charts and good information. Among the gems we discovered is that in 2013 Gulfport and Rice Energy formed a joint venture, combining their acreage in four townships in Belmont County, OH to drill in the Utica together in that area…

    NOTE: MDN originally said the Gulfport/Rice jv is for Guernsey County, OH. We were mistaken. It is in Belmont County, OH. Our apologies!
    Read More “Gulfport Energy 1Q14: New CEO Tweaking the Utica Program”

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    Carrizo O&G 1Q14: Utica Ramping Up; Extra $100M from the Bank

    Carrizo Oil & Gas is a Houston-based driller with drilling operations in four shale plays in the U.S. Two of the four are the Marcellus and Utica. Earlier this week Carrizo issued their first quarter 2014 operational and financial update. Among the tidbits MDN has picked up from that release: Carrizo has gotten a $100 million increase in the line of credit from their banks–more money to drill with; the company spent 75% of its drilling and completions budget in 1Q14 on the Eagle Ford, an “oily” play; for the rest of the year, the company is spending the majority of its budget for land acquisition on the Eagle Ford and the Utica; they will drill 9 Utica wells this year and they are currently negotiating a midstream (pipeline) solution for the Utica; they’ve recently added more Utica leases in Guernsey County, OH; in the Marcellus, Carrizo plans to drill a total of 25 wells this year, but they are hampered and somewhat frustrated by lack of midstream capacity in the Marcellus.

    Below we have lifted out of the update those sections that provide the most information about Carrizo’s operation in the Marcellus and Utica…
    Read More “Carrizo O&G 1Q14: Utica Ramping Up; Extra $100M from the Bank”

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    Magnum Hunter Gets Extra $92.5M Line of Credit: Proved Reserves

    Think “proved reserves” (a company’s best guess for how much retrievable oil or gas there is under their leased property based on real numbers) isn’t all that important? Just so much fluff that drilling companies throw out there to impress investors? That financial numbers like proved reserves don’t affect landowners? Think again. Proved reserves are a very serious business, especially when it comes to borrowing money used for more drilling.

    Take Magnum Hunter Resources, for example. MHR concentrates their drilling and midstream activity in the Marcellus and now Utica Shale. Based on a semi-annual review of their credit worthiness by their banks (plural), the banks determined MHR’s proved reserves number has increased sufficiently that they are willing to extend MHR’s line of credit another $92.5 million–to $325 million. That’s a pretty hefty line of credit! Here’s the announcement from MHR…
    Read More “Magnum Hunter Gets Extra $92.5M Line of Credit: Proved Reserves”

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    EIA Releases Annual Energy Outlook – Gives Us the Big Picture

    The U.S. Energy Information Administration (EIA) has just released their Annual Energy Outlook 2014 (full copy embedded below). Each year the EIA performs a comprehensive review of all sources of energy used in the U.S., and they take their best guess at where supply and demand–and prices–will go in the near- and long-term (to 2040 for this report). The EIA employs some of the best brains in the business and of all the government agencies, the EIA is least susceptible to political manipulation by The White House. We love the EIA and the reports and information they generate.

    When MDN editor Jim Willis attended the Platts Global Energy Forum last December, it was a real eye-opener (see Jimmy Goes to the Big Apple: Platts Global Energy Outlook Forum). Those of us heavily involved in the shale industry sometimes lose sight of the bigger picture. Shale energy is just one component–a very important component, but just one–in a much larger energy picture. This annual report from the EIA helps provide that larger perspective–helping us to see where the shale energy industry “fits” in the picture. One tidbit from the report we noticed was their prediction for where the commodity price of natural gas will go in the near- and long-term. The EIA says…
    Read More “EIA Releases Annual Energy Outlook – Gives Us the Big Picture”

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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”