Marcellus Drilling News

Energy Companies | EQT Corp | Utica Shale

EQT 1Q14: Marcellus Doing Great, Utica Not So Much
April 25, 2014April 25, 2014

Yesterday EQT released their first quarter 2014 results, along with conducting an analyst call. One of the bigger pieces of news is that EQT is not happy with their Utica Shale well results (see our companion story today). However, the rest of the news was very positive. Production was 30% higher than a year ago, expenses were 17% lower, and EQT’s midstream division is humming right along too.

EQT drilled 64 gross wells in 1Q14: 46 wells targeting the Marcellus, 14 wells targeting the Huron, and 4 wells targeting the Upper Devonian Shale. In 2014, EQT will complete and evaluate 5 Utica wells drilled in 2013 but will not drill any more wells on its Ohio Utica acreage–at least until after this year. Instead, EQT now expects to drill 8 additional Marcellus wells and 13 additional Upper Devonian wells for a total of 194 Marcellus wells and 43 Upper Devonian wells in 2014. The change does not result in any additional capital outlay. Below is a portion of the update released by EQT yesterday, and the full transcript of the analyst call (lots of really interesting stuff)…
Read More “EQT 1Q14: Marcellus Doing Great, Utica Not So Much”
Coterra Energy (Cabot O&G) | Energy Companies

Cabot 1Q14: Marcellus Continues to Soar for Cabot
April 25, 2014April 25, 2014

Cabot Oil & Gas published their first quarter 2014 update yesterday, and the news continues to be spectacular. On more than one occasion MDN has noted how Cabot continues to spin gold from hay–making money hand over fist in the dry gas Marcellus of Susquehanna County, PA, even in a low commodity price environment. This latest update continues that trend. Cabot’s production is up 34% from the same time last year. Net income is up 102% over last year. And costs are down 19%.

Here’s the Cabot 1Q14 update:
Read More “Cabot 1Q14: Marcellus Continues to Soar for Cabot”
Energy Companies | Noble Energy

Noble Energy 1Q14: Marcellus Experiments Paying Off
April 25, 2014April 25, 2014

Noble Energy is a big driller involved in a number of resource plays–both onshore and offshore. One of their offshore operations–off the coast of Israel–has transformed Israel from energy dependent to becoming almost completely energy independent. Yesterday in the parade of quarterly earnings updates, Noble released their update for first quarter 2014. Noble is a big driller in the Marcellus Shale and their northeast program, which is what interests us, continues to perform very well for the company.

Of particular interest to MDN is a brief paragraph about Noble’s Marcellus program and the experimentation they’ve been doing–and the impressive results they’ve been getting from those experiments…
Read More “Noble Energy 1Q14: Marcellus Experiments Paying Off”
Allegheny County | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Olympus/Huntley & Huntley | Pennsylvania | Range Resources Corp | Regulation

Republicans (!) Seek to Slow Approval of Deer Lakes Park Lease?
April 25, 2014April 25, 2014

To us, a somewhat strange case in the ongoing effort for Allegheny County, PA to lease land under Deer Lakes Park for drilling. Allegheny County Executive Rich Fitzgerald squeezed Range Resources hard and negotiated a deal to allow Range to drill under (not on) Deer Lakes Park for a $4.7 million in signing bonus and 18% royalties, which will net the county something over $70 million over the next 20-30 years (see Allegheny Co Exec Bests Range on Deer Lakes Park Lease Deal). It’s a sweet deal. The only thing that remains is for the 15-member county council to approve it.

The strange part is a bid by a pair of Republicans to enlist outside legal counsel to review the lease–when council already has its own attorney for that purpose. Normally it’s the Republicans who are pro-drilling. The effort to get outside counsel, which failed in committee along a party-line vote of 5-2, is nothing more than a “stall tactic” according to Rich Fitzgerald. That’s the strange part–why would the Republicans want to delay this lease? Council will meet next Wednesday to take up the Deer Lakes Park lease again–hopefully to approve it…
Read More “Republicans (!) Seek to Slow Approval of Deer Lakes Park Lease?”
Baker Hughes | Energy Services | Hydraulic Fracturing | Industrywide Issues

Baker Hughes to Publish Frack Fluid “Secrets” on FracFocus
April 25, 2014April 25, 2014

Baker Hughes, a major oilfield services company that competes with Halliburton and Schlumberger has “quietly” implemented a new policy to disclose all (even proprietary) ingredients used in their fracking fluids, according to a report by EnergyWire. The full recipes for each fracking fluid used at every well will be filed with the FracFocus.org website. FracFocus has been knocked around and pilloried by anti-drillers since it was launched, including an attack by Harvard (see FracFocus Responds to Flawed Harvard Study + MDN has a Question). The fact is, FracFocus just keeps getting better and better (see FracFocus 2.0 – Fracking Fluid Chemical Registry Gets Even Better).

You don’t hear much these days from anti-drillers throwing out the argument, “The industry keeps its fracking fluids secret,” except from a few out-of-touch, hardened wackos. That’s because the drilling industry makes all chemicals known–and now, even the tiny bit of “secret” in their secret sauce…
Read More “Baker Hughes to Publish Frack Fluid “Secrets” on FracFocus”
Air Quality | Industrywide Issues | Pennsylvania | Pipelines | Regulation | Statewide PA

New PA Regs Limiting NOx/VOC Likely Affect Compressor Stations
April 25, 2014April 25, 2014

The Babst Calland law firm has put out an alert that proposed new rules recently issued by the Pennsylvania Environmental Quality Board to require “reasonably available control technology” (RACT) will affect “hundreds of facilities” that produce nitrogen oxides (NOx) or volatile organic compounds (VOCs), requiring them to spend money and install new equipment. There are nine source categories covered by the new rule, and although none of those categories say “compressor stations,” one of them is “turbines” which may cover compressor stations. At any rate, pipeline compressor stations are a major source of NOx and VOCs and will almost certainly be affected by the coming changes.

Here’s the Administrative Watch for the RACT proposed rules, issued by the legal beagles at Babst Calland:
Read More “New PA Regs Limiting NOx/VOC Likely Affect Compressor Stations”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | New York | Otsego County | Statewide NY

The Only Oil Industry Exec Loved by NY’s Anti-Drilling Wackos
April 25, 2014July 27, 2018

There’s a reason why the so-called Elected Officials to Protect New York–a group of numskull politicians in New York State who oppose drilling so they can get more votes–trots out a “retired high-ranking oil executive” who’s already made his millions and doesn’t give a #$%@ about anyone else making money–to declare the miracle of hydraulic fracturing can’t be done safely. The reason? Because they can’t find anyone else from the industry to do it–like someone who has actually been in charge of a fracking operation and knows how safe it is (unlike the “retired high-ranking oil executive” who retired before high-volume fracking came around). And so, one rich, old, white guy is the darling of New York’s anti-drillers and gets major play in anti-drilling publications like the Albany Times Union, while thousands of oil company executives that actually oversee fracking are never consulted for their opinion about a subject on which they are expert. Figures.

Anti-drilling politicians trot out the retired executive–who has a summer home in swanky Cooperstown next to other retired, rich, white liberals–to denigrate one of the highest achievements of mankind yet: hydraulic fracturing. He thinks all fracking should be shut down–it ain’t safe, ya know. And the TU, in dictation mode, dutifully “reports” it. Meanwhile, the retired executive sips another martini with his rich, white, liberal neighbors…
Read More “The Only Oil Industry Exec Loved by NY’s Anti-Drilling Wackos”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Statewide PA | Sunoco Logistics

4 Anti Groups File Petition Against Sunoco Logistics with PUC
April 25, 2014April 25, 2014

Last Friday an environmentalist lawyer, on behalf of a group of residents from West Goshen, PA, filed an official request (or petition) with the Pennsylvania Public Utility Commission (PUC) to argue that Sunoco Logistics and its Mariner East natural gas liquids pipeline should not be granted “public utility corporation” status (see More Pushback from PA Residents on Proposed Mariner East Pipeline). Four well-funded anti-drilling groups joined in the chorus and filed their own petitions with the PUC by the deadline on Monday. Those groups include The Delaware Riverkeeper (see Delaware Riverkeeper Gets a French Kiss from Phila. Inquirer), the Clean Air Council, the Pipeline Safety Coalition and the Mountain Watershed Association.

All of the groups filing argue that Sunoco Logistics–actually a subsidiary called Sunoco Pipeline–does not meet “the legal standard” to qualify as a public utility corporation–which is not to be confused with being a public utility proper…
Read More “4 Anti Groups File Petition Against Sunoco Logistics with PUC”
Energy Services | MarkWest Energy

MarkWest Energy Board Change: Bailey Retiring, Bruckmann Joining
April 25, 2014April 25, 2014

A change on the way to the board of directors for MarkWest Energy–arguably the biggest midstream player in the Marcellus/Utica region. MarkWest announced today that Keith Bailey is retiring from the board in June. In his place MarkWest is putting forward for nomination William Bruckmann III, currently a consultant but formerly with Williams. Here’s the announcement:
Read More “MarkWest Energy Board Change: Bailey Retiring, Bruckmann Joining”
Allegheny County | Pennsylvania | Statewide PA

See Awesome Shale Technologies on Display at SGICC Awards
April 25, 2014April 25, 2014

For the third year running the Ben Franklin Shale Gas Innovation and Commercialization Center (SGICC) is holding a contest for the best shale gas-oriented innovations/new products/new service ideas. This year’s contest will award $25,000 to four winners (see 2014 Ben Franklin Shale Gas Contest – $100K in Cash Prizes!). The deadline to enter the contest is long over (Feb. 1st). However, you can attend the awards ceremony–FREE–in Pittsburgh and get a close-up look at the 13 finalists and their awesome products and services. And see who takes home the prize money!

Here’s an announcement from the SGICC with details about attending the awards ceremony on May 15th in Pittsburgh…
Read More “See Awesome Shale Technologies on Display at SGICC Awards”
Best of the Rest

Marcellus & Utica Shale Story Links: Fri, Apr 25, 2014
April 25, 2014April 25, 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: Fri, Apr 25, 2014”
Pennsylvania | Statewide PA

Join Us for PA Jobs, PA Energy Rally in Harrisburg, PA on May 6
April 24, 2014May 5, 2014

In less than two weeks–on Tuesday, May 6th–thousands of farmers, laborers, landowners, conservation groups, local government leaders, and the business community, will gather together at PA’s State Capitol in Harrisburg, PA for a historic march. United Shale Advocates is orchestrating a unique Pennsylvania Jobs, Pennsylvania Energy rally that will bring thousands of Pennsylvanians together to speak with a united voice in support of responsible energy development. Why march? Policy proposals in Harrisburg – including burdensome layers of new energy taxes on job creators and consumers, as well as other measures, would heavily tip the competitive scales against Pennsylvania – would place everything that’s been achieved at risk. Now is the time to march and to make our collective voices heard–loudly.

MDN has been warning you since last year that Marcellus drilling is at risk in Pennsylvania–from moratoriums, high severance taxes and frivolous lawsuits. This event is for anyone who supports Marcellus Shale drilling–your chance to express your loud and strong support to politicians and the media. A crowd of thousands will get noticed–make no mistake. Would you PLEASE consider joining us? And we say “us” because MDN editor Jim Willis (a native New Yorker) will attend and march in support of shale drilling in PA. Yes, it’s a sacrifice and takes a day of your time. But it’s worth it. Below are the agenda and details for how you can join us and get a FREE bus ride to the event. ~~However, the deadline to sign up for a spot on a bus is tomorrow, April 25th–so you need to sign up right away~~…

YOU CAN STILL REGISTER ONLINE. PLEASE JOIN JIM ON THE BUS! LET’S FILL THE SUSQUEHANNA COUNTY BUS…
Read More “Join Us for PA Jobs, PA Energy Rally in Harrisburg, PA on May 6”
Industrywide Issues | Landfills | Statewide WV | West Virginia | Wetzel County

Radioactive Water Leaching from WV Landfills with Drill Cuttings?
April 24, 2014April 24, 2014

Are drill cuttings from Marcellus Shale drilling in West Virginia that are disposed in landfills causing unsafe levels of radioactivity in water leaching from those landfills? Below is a lone article we noticed that makes that claim. It is the only such article we’ve seen, so we need to be very cautious. It makes some rather disturbing claims, as you’ll see.

The fact than no major news organizations have picked up on radioactive water potentially leaching from a few landfills in WV makes us think that maybe this one story is not all that credible (seeour layman’s analysis below). However, MDN has always prided itself on bringing the bad news as well as the good news with respect to fracking and shale drilling. We have nothing to hide when it comes to shale drilling. So we plant this issue “on our radar” to keep an eye on…
Read More “Radioactive Water Leaching from WV Landfills with Drill Cuttings?”
Lease & Royalty Payments | Pennsylvania | Susquehanna County

Rural NE PA School Nets $1.7M in Royalties from 2 Marcellus Wells
April 24, 2014April 24, 2014

Get this: Elk Lake School District, in very rural Susquehanna County, PA (we’ve been there, it’s surrounded by farm fields), has raked in more than $1.7 million in royalties–from two Marcellus Shale wells drilled on its property.

And the royalties just keep comin’…
Read More “Rural NE PA School Nets $1.7M in Royalties from 2 Marcellus Wells”
Energy Companies | EQT Corp | Hydraulic Fracturing | Industrywide Issues | Lease & Royalty Payments | Litigation | Pennsylvania | Statewide PA

Was PA Court Decision Really an OK for Forced Pooling?
April 24, 2014April 24, 2014

Sometimes language is a funny thing. Terms come into use and and thrown around–but in different contexts they mean different things. MDN recently noticed that earlier this month EQT won a lawsuit against landowners in Allengheny County, PA. The landowners had leased their land with EQT, but we’re guessing they were old leases, done some number of years ago, because the landowners said EQT could not drill under their properties collectively–in a drilling unit. Apparently the landowners wanted EQT to drill on each individual property–or perhaps (more likely) renegotiate the old leases for better money to allow horizontal shale drilling. Bear in mind EQT and the landowners–all of them–already have contractual leases.

EQT sued (EQT Production Co. v. Opatkiewicz et al.) to “force” the landowners to allow them to do their job–drill horizontally under several properties as part of a drilling unit. The court ruled in favor of EQT (copy of the decision is embedded below) saying the landowners can’t stipulate how EQT gets the gas from leased contiguous properties. That is our essential understanding of the case. However, it’s widely being reported that the court “supported forced pooling”…
Read More “Was PA Court Decision Really an OK for Forced Pooling?”
Industrywide Issues | Supply Chain

Little Pizza Shop Makes “a Fortune” by Catering to Nearby Drill Site
April 24, 2014April 24, 2014

How can “a little pizza show in Uniontown” make “a fortune” from the shale industry? Apparently, just by asking. The Ohio Valley Oil & Gas Association held an event on Tuesday in Wheeling called “Boomtown Panel 2.0.” Attending the event were people from the oil and gas industry, vendors to the industry, and vendors who want to sell to the industry (i.e. the supply chain). They were there to network and discuss how the shale boom is impacting the region.

There were several comments from speakers that MDN finds extremely helpful for those trying to enter the supply chain and sell their goods and services to the drilling industry. Including a quick quip from a Rice Energy rep of how that little pizza shop is making a fortune by catering lunch every day to a local drilling site for 60 people…
Read More “Little Pizza Shop Makes “a Fortune” by Catering to Nearby Drill Site”