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Marcellus Drilling News
  • Chesapeake Energy | Energy Companies

    The Skeletons Knocking Around in Chesapeake Energy’s Closet

    April 10, 2014April 10, 2014

    An article on The Motley Fool investors website takes a look at Chesapeake Energy and the potential skeletons that may be hiding in their closet. The purpose of the article is to make the point that potential suitors who may want to buy Chessy may want to reconsider that concept because of Chessy’s skeletons–much to dismay of corporate raider Carl Icahn who has invested a lot of his own money on the gamble that he can hack off entire pieces of Chessy and make it an attractive buy-out option, boosting his own fortune even more (Tolkien’s Smaug sitting atop mountains of ill-gotten gold comes to mind).

    So which skeletons do we already know about in Chessy’s closet, and which ones don’t we know about (yet)?…
    Read More “The Skeletons Knocking Around in Chesapeake Energy’s Closet”

  • Health Impacts | Industrywide Issues | Meetings | Sand/Proppant | Statewide WV | West Virginia

    Silica Dust Exposure Topic A at ShaleSafe Conference in Wheeling

    April 10, 2014April 10, 2014

    The West Virginia Oil and Natural Gas Association hosted their inaugural ShaleSafe Conference and Expo at Oglebay Park in Wheeling earlier this week (Monday through Wednesday). What makes the conference interesting and unusual is that the entire event was focused on the topic of safety in shale plays–particularly the Marcellus and Utica. If you hang around with oil and gas people for any length of time, the topic of safety comes up. Contrary to the picture anti-drillers try to paint, the oil and gas industry is laser focused on worker and public safety. And that focus showed at the conference.

    The highlight of the conference–the main focus–was a panel on silica (sand) exposure, which was held yesterday (Wednesday). That panel featured Michael Breitenstein from the National Institute for Occupational Safety and Health (NIOSH) and Dr. Michael McCawley, chairman of the Department of Occupational & Environmental Health Sciences in the School of Public Health at West Virginia University. McCawley, you may remember, has been beating the drum for some time that setbacks for drilling in WV are not enough and that air pollution coming from drilling operations is a serious issue (see WVU Prof Keeps Up Pressure on Improved Air Quality at Drill Sites). Silica dust is a serious issue, and both speakers were there to put the fear of God into the audience about it…
    Read More “Silica Dust Exposure Topic A at ShaleSafe Conference in Wheeling”

  • Accidents | Hydraulic Fracturing | Industrywide Issues | Ohio | Pennsylvania | Regulation | Statewide OH | Statewide PA | Statewide WV | West Virginia

    WV Conference Speaker Says PA is Tops with Spill Containment Regs

    April 10, 2014April 10, 2014

    The main focus for the West Virginia Oil and Natural Gas Association’s ShaleSafe Conference and Expo at Oglebay Park in Wheeling this week was silica dust exposure (see MDN’s related article published today). However, another session was a close second as Topic A–the session on spill containment. The sole presenter on spill containment was Beth Powell from New Pig Energy. Spill containment became a huge topic for everyone in West Virginia after a chemical spill related to coal mining affected the drinking water for 300,000 WV residents earlier this year. In the aftermath of that spill, the WV legislature passed new regulations for chemical storage tanks–regulations that affect not only the coal industry guilty of the spill, but also the shale drilling industry too (see Impact of WV’s New Chemical Tank Law on Marcellus Drillers).

    Ms. Powell had some interesting things to say about spill containment–and she should know since well pad containment systems are New Pig’s business. Among her comments, Powell said Pennsylvania’s Dept. of Environmental Protection (DEP) regulations are far more strict than either West Virginia or Ohio when it comes to spills and spill containment. Now that’s something you don’t hear from anti-drillers in PA who try to paint the DEP as lax, derelict in their duty, and in bed with the drilling industry…
    Read More “WV Conference Speaker Says PA is Tops with Spill Containment Regs”

  • Economic Impact | Ethane | Industrywide Issues | Ohio | Statewide OH | Utica Shale

    Plastics, Low Electric Rates from Utica/Marcellus Help NE OH Cos.

    April 10, 2014April 10, 2014

    How can northeastern Ohio, once thought to be the epicenter for Utica Shale drilling but now yesterday’s news, still profit from the shale drilling revolution happening in the southern part of the state? As Dustin Hoffman’s character was told in The Graduate, one word: plastics. Plastics and petrochemicals were the main focus of the “Plastics Products from Utica Energy” event held in Canton, OH on April 7th. Ethane from Utica and Marcellus Shale drilling can be cracked to produce ethylene, the raw material used in making plastics. With two cracker plants planned in the region–one in Beaver County, PA and one in Parkersburg, WV–petrochemical manufacturers in northeastern OH are in a great geography to take advantage of shale drilling, even if it’s not happening where they are located.

    However, plastics is not the only thing Ohio manufacturers need. They also need cheap electricity, and natural gas used to fire electric generating plants is lowering the cost of electricity throughout the region (along with lowering pollution), which is very good news for northeastern OH, giving their manufacturers a leg up on other areas…
    Read More “Plastics, Low Electric Rates from Utica/Marcellus Help NE OH Cos.”

  • Bucks County | Industrywide Issues | Montgomery County | Pennsylvania | Statewide PA | Taxation

    2 Spineless PA RINOs Join Call for High Marcellus Severance Tax

    April 10, 2014April 10, 2014

    Several mainstream media outlets are trumpeting that “Republicans join the call for tax on Marcellus drillers.” Of course you have to read the fine print of the story to learn the so-called Republicans, which are really Republicans-In-Name-Only (RINOs), are really just two Republicans from the Philadelphia area where there is no drilling. They both want to stick their fingers into the pockets of landowners and drillers so they have funny money to throw around and buy votes with. Yes, we’re talking to you Gene DiGirolamo (Bucks County) and Tom Murt (Montgomery/Philadelphia counties). Shame on both of you.

    The real story is this: Two spineless RINO sellouts from the Philly area “join the call” for obscene taxes on the drilling industry. There is no mass movement among Republicans in Pennsylvania to kill off the drilling industry with high severance taxes being advocated by just about every Democrat legislator and Democrat candidate in the state. We sure hope the people of PA have wised up to the Dem drivel about taxing one industry (shale drilling) to give the Dems (and RINOs) boatloads of money to squander on pet projects–the chief pet project being to put money into the pockets of people who will vote for them…
    Read More “2 Spineless PA RINOs Join Call for High Marcellus Severance Tax”

  • Economic Impact | Industrywide Issues | Ohio County | Supply Chain | West Virginia

    Oglebay Resort Profits from NE Shale in a Way You’d Never Guess

    April 10, 2014April 10, 2014

    The Oglebay Resort & Conference Center by all accounts is a spectacular venue and the perfect place to hold a conference. With 1,700 acres near Wheeling, WV, Oglebay offers 271 rooms, 54 standalone cottages, a spa, indoor pool, jacuzzi, sauna, top notch cuisine and dining…you get the picture. The West Virginia Oil & Natural Gas Association (WVONGA) chose Oglebay to host its first-ever ShaleSafe Conference & Expo, held earlier this week (see a pair of MDN stories about the event in today’s lineup).

    The purpose of this story is to highlight how Oglebay is benefiting (profiting!) from the shale drilling industry. Given their great location, in the middle of shale drilling on all sides (SW PA, WV, OH), it’s no surprise that Oglebay is happy to host a number of shale and oil & gas related events. It’s an important new revenue stream for them. With pristine countryside and unparalleled views, with old-growth trees and wildlife frolicking around the 1,700 acres, you would certainly want to protect and maintain it. But wait, what’s this? Oglebay leased their land for drilling in 2009 (gasp) and they now receive royalty checks too? That’s right–and when you visit Oglebay with its pristine countryside and unparalleled views, you’d never know it unless they told you…
    Read More “Oglebay Resort Profits from NE Shale in a Way You’d Never Guess”

  • Best of the Rest

    Marcellus & Utica Shale Story Links: Thu, Apr 10, 2014

    April 10, 2014April 10, 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: Thu, Apr 10, 2014”

  • Chesapeake Energy | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation | Pennsylvania | Statewide PA

    Bad to Worse: PA Royalty Owner Asks Court for Chessy Class Action

    April 9, 2014April 9, 2014

    from bad to worseChesapeake Energy continues to find itself under the metaphorical gun with respect to royalty payments in Pennsylvania. The PA legislature is considering a bill (HB 1684) that would plug a legal loophole and require Chesapeake and other drillers to pay landowners a 12.5% minimum royalty regardless of post-production costs (see PA NARO Alert: Tell Your State Rep to Vote YES on HB 1684). Landowners in Bradford County sued Chessy held an anti-Chesapeake rally to further express their extreme displeasure (see Bradford PA Landowner Rally over Chesapeake Royalty Shenanigans). Gov. Corbett asked PA’s anti-drilling Attorney General, Kathleen Kane, to investigate (showing how bad it’s gotten–to stoop to asking her to get involved).

    And now from bad to worse: a company that owns royalty rights in PA, Scout Petroleum, claims they’ve been screwed out of royalties by Chesapeake and has asked a judge for a full refund and to force Chesapeake into arbitration and grant class-action status to the whole, festering mess…
    Read More “Bad to Worse: PA Royalty Owner Asks Court for Chessy Class Action”

  • Hydraulic Fracturing | Industrywide Issues | Litigation | Pennsylvania | Regulation | Statewide PA

    Act 13 Case Goes Back to Court, Drillers Petition to Join Lawsuit

    April 9, 2014April 9, 2014

    The Marcellus Shale drilling industry in Pennsylvania is trying to make some lemonade from the truckload of lemons handed to them by the PA Supreme Court’s ill-fated decision to let seven selfish townships gut the state’s Act 13 drilling law passed in 2012. We’ve covered the issue extensively (see a list of MDN’s Act 13 articles here). Perhaps the most egregious and outrageous miscarriage of justice in the case is that the drilling industry, which is directly affected by the case, was never allowed to join the case. The courts said they didn’t have “standing”–and yet those same courts allowed the virulently anti-drilling Delaware Riverkeeper Network to be party to the case. Simply boggles the mind.

    The PA Supreme’s in their “wisdom,” decided the zoning portions of the case and sent the rest of the case back to a lower court so they could finish gutting the Act 13 law. As MDN previously reported exactly a month ago, the drilling industry has, once again, respectfully requested they be allowed to join the case now that it’s in the home stretch (see Drillers Petition PA Court (Again) to Participate in Act 13 Case). While the drilling industry can’t undo what has been done by the Supreme Court, it is clear that they believe they can lessen the damage done if they win certain arguments in lower court–arguments like affirming the Public Utility Commission’s authority to review whether a zoning ordinance crosses the line and preempts state oil and gas law. In other words, the seven selfish towns may not have gotten their own selfish way after all–not entirely. The hearing on whether to allow the industry to join what’s left of the lawsuit is today…
    Read More “Act 13 Case Goes Back to Court, Drillers Petition to Join Lawsuit”

  • Accidents | Energy Companies | Energy Services | Gastar Exploration | Industrywide Issues | Marshall County | Pipelines | West Virginia | Williams

    Gastar Shuts-in Marshall County Wells Due to Pipeline Explosion

    April 9, 2014April 9, 2014

    Last Saturday morning a Williams pipeline in Marshall County, WV ruptured and caught fire (see Williams Pipeline Rupture/Fire in Marshall County, WV). We still don’t know the cause for sure, but it’s looking like there was a small landslide from a hill that triggered the rupture and explosion.

    Already that single 12-inch pipeline is having an effect on some Williams customers. Gastar Exploration with wells in Marshall County issued a statement on Monday to say they’ve had “shut-in” their wells in the area because of the pipeline outage. We have the Gastar statement below, along with a first-hand, eyewitness account of the explosion from a nearby neighbor…
    Read More “Gastar Shuts-in Marshall County Wells Due to Pipeline Explosion”

  • CONSOL Energy | Energy Companies

    CONSOL Energy Doubles Marcellus Production in 1Q14

    April 9, 2014April 9, 2014

    CONSOL Energy is early out of the chute with a heads up on their first quarter 2014 performance. The company says natural gas production for 1Q14 was 48.4 billion cubic feet equivalent (Bcfe), which is up 23% from 1Q13 (however Marcellus production doubled in the same period). CONSOL also said they are on track to produce 215 – 235 Bcfe by the end of this year.

    A full operational report with all the details is coming April 29. In the meantime, here’s CONSOL’s short-and-sweet press release from Monday:
    Read More “CONSOL Energy Doubles Marcellus Production in 1Q14”

  • Carroll County | Energy Companies | Ohio | Rex Energy | Utica Shale

    Rex Energy Releases #s for 3 Utica Wells in Carroll County, OH

    April 9, 2014April 9, 2014

    Even though the “sweet spot” of the Utica Shale has moved from northern to southern Ohio (eastern portion of the state), that doesn’t mean Carroll County in the northern part of the play–the original “sweet spot”–is going away any time soon. Rex Energy released production numbers yesterday for their three-well Ocel pad, located in Carroll County. All three wells on the pad are producing natural gas (methane), natural gas liquids (NGLs) and condensate (natural gasoline). The production numbers for the three wells are very respectable…
    Read More “Rex Energy Releases #s for 3 Utica Wells in Carroll County, OH”

  • Allegheny County | Energy Services | Ethane | Exporting | Industrywide Issues | NOVA Chemicals | Pennsylvania | Pipelines | Processing Plants | Statewide PA

    NOVA Visits Pittsburgh, Takes About Sarnia Cracker Expansion

    April 9, 2014April 9, 2014

    Last December MDN brought you the news that NOVA Chemicals, which operates the Corunna ethane cracker plant in Sarnia, Ontario (Canada) plans to expand their cracker plant using more Marcellus and Utica Shale ethane (see NOVA Chemicals Plans Expansion of Corunna Cracker in Sarnia). At that time NOVA said they will expand capacity by an additional 20% gradually between 2014 and 2018.

    At a special event in Pittsburgh designed to strengthen the already-strong connection between Pennsylvania and Canada, called Pop-Up Canada, NOVA vice president John Hotz provided a few more details about NOVA’s plans for the Corunna cracker plant…
    Read More “NOVA Visits Pittsburgh, Takes About Sarnia Cracker Expansion”

  • Accidents | Anti-Drilling/Fossil Fuel | Energy Companies | EQT Corp | Industrywide Issues | Pennsylvania | Tioga County (PA)

    Anti-Drilling Groups Want PA DEP to Investigate 2-Yr Old EQT Spill

    April 9, 2014April 9, 2014

    News flash: A bunch of virulently anti-drilling groups, including PennEnvironment, PennFuture, the [so-called] Responsible Drilling Alliance, the Delaware Riverkeeper Network, Clean Water Action, and the Lower Susquehanna Riverkeeper are asking the Pennsylvania Dept. of Environmental Protection (DEP) to investigate a two-year old spill of frack water in Tioga County, PA by EQT. Further news flash: said virulently anti-drilling groups think EQT is an “irresponsible operator” in the Marcellus. Film at 11.

    Here’s the propaganda fundraiser (also called a press release) issued by said virulently anti-drilling groups:
    Read More “Anti-Drilling Groups Want PA DEP to Investigate 2-Yr Old EQT Spill”

  • Electrical Generation | Industrywide Issues | Maryland | Statewide MD

    Maryland PSC Approves NatGas-Fired Electric General Plant

    April 9, 2014April 9, 2014

    Somehow, some way, the only state even more dysfunctional than New York when it comes to the issue of natural gas drilling, the State of Maryland, has just approved a new natural gas-fired electric generating plant in Cecil County, MD. And it only took them 11 months to approve it. Wonders never cease!

    The Maryland Public Service Commission on Tuesday gave final approval to the 1,000-megawatt Wildcat Point Generation Facility. Let the wailing, gnashing of teeth and (most importantly) useless protests by global-warming-nutter-anti-drillers begin! Details about the new plant to be built…
    Read More “Maryland PSC Approves NatGas-Fired Electric General Plant”

  • Carroll County | Economic Impact | Housing | Industrywide Issues | Jobs | Ohio | Stark County | Utica Shale

    Stark County Still Sitting Pretty in the Utica, Even Without Drilling

    April 9, 2014April 9, 2014

    Stark County, OH has gone through dramatic changes in a short period of time. Just a few years ago Utica Shale drilling near Stark County was hot with Chesapeake Energy leading the charge in places like neighboring Carroll County. Stark (and its largest city, Canton) were the beneficiaries of all that drilling in the northern part of the Utica play. Today? The “sweet spot” of Utica drilling has moved south, and yesterday’s hot areas like Stark and Carroll are today’s cold areas. Or are they?

    Although drilling in Stark never really took off and although drilling in nearby Carroll is starting to decrease, that doesn’t mean Stark is not benefiting, in a big way, from Utica drilling. David Kaminski, the Canton Regional Chamber of Commerce’s director of energy and public affairs, said Stark County is still sitting pretty with respect to the Utica…
    Read More “Stark County Still Sitting Pretty in the Utica, Even Without Drilling”

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