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Marcellus Drilling News
  • Anti-Drilling/Fossil Fuel | Broome County | Hydraulic Fracturing | Industrywide Issues | New York

    Fracking Debate at Binghamton U: Holko vs Steingraber

    February 25, 2014February 25, 2014

    Last night MDN editor Jim Willis attended a “You Defend It” debate at Binghamton University between pro-driller John Holko, president of Lanape Resources (Buffalo area), and anti-driller Sandra Steingraber, a so-called “scholar in residence” at Ithaca College and founder of New Yorkers Against Fracking. The debate was on the topic of whether or not New York should allow high volume hydraulic fracturing (shale fracking). The format was interesting and refreshing–NO audience participation allowed. No cat calls or clapping or hooting characteristic of hippie anti-drillers was allowed. Also, the debaters were not allowed to question each other or respond to the other’s arguments. It was the moderator (Binghamton attorney Rob Kilmer) asking them questions in turn–and that’s it. The audience, which MDN would estimate at 250-300 people, heard the best pro and con arguments from both sides. Refreshing. And, enlightening.

    If we could step back and make an observation about the poise and demeanor of the debaters, John Holko was relaxed and worked from no notes. Sandra Steingraber, whom we have perhaps uncharitably called nutty, was nuttier than ever. She looked tense and had many notes and every response to a question started and ended with how fracking leads to an environmental holocaust that’s killing Mother Earth. When grilled by Kilmer as to why fracking doesn’t seem to be creating widespread damage in Pennsylvania the way she portrays it would in New York, she responded (amazingly) it really is. Steingraber maintains “everyone” is hushed up by legal gag orders in PA that don’t allow residents to tell the truth of what’s happening. So you see, she was simply off the rails–yet again…
    Read More “Fracking Debate at Binghamton U: Holko vs Steingraber”

  • Chesapeake Energy | Energy Companies

    Chesapeake Energy Looks to Dump Oilfield Services Division

    February 25, 2014February 25, 2014

    Doug “the ax” Lawler, CEO of Chesapeake, continues to swing his ax to get rid of assets the company worked so hard to create. The latest asset Lawler (and his boss corporate raider Carl Icahn) want the company to get rid of is Chesapeake Oilfield Services, or COS. Chessy issued a press release yesterday stating they want to either spin COS off into it’s own company, or sell it outright. Not in the cards: keeping it and expanding it.

    Here’s the latest from “the ax”…
    Read More “Chesapeake Energy Looks to Dump Oilfield Services Division”

  • Blue Ridge Mtn Res/Magnum Hunter | Energy Companies

    Magnum Hunter’s 4Q13 Update: 2 Wells, 2 Formations, Same Pad

    February 25, 2014February 25, 2014

    Magnum Hunter (MH) issued their fourth quarter 2013 and full year 2013 financial and operational update yesterday. Below we’ve selected out the operations portion leaving the financial discussion behind. What does it show? MH sold off their Eagle Ford assets in 2013 for $401 and has invested that money in the two remaining regions in which the focus–the Marcellus/Utica and the Bakken Shale (or Williston Basin). MH is currently operating 6 drilling rigs–3 in the Marcellus/Utica and 3 in the Bakken. They drilled 8 new wells in the northeast in 4Q13 and 15 new wells in the Bakken (so you see where their attention is going–to the more oily play).

    Of interest, buried in the narrative, is mention of the recent Stadler 3UH Utica Shale well recently brought online in Monroe County with a peak rate of 32.5 MMcf/d (see Magnum Hunter’s Prolific (& Dry) Utica Well in Monroe County, OH). Here’s the interesting part: MH is also right now completing the Stalder 2MH well on the same pad–except the 2MH is a Marcellus (not Utica) well. So MH is targeting two different formations on the same pad. It will be fascinating to compare the production from the two wells. Here’s select portions of yesterday’s update:
    Read More “Magnum Hunter’s 4Q13 Update: 2 Wells, 2 Formations, Same Pad”

  • Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Maryland | Regulation | Statewide MD

    3 Anti-Drilling MD Commissioners Want Fracking Delayed…Surprise!

    February 25, 2014February 25, 2014

    It’s been a loooong road in Maryland, evaluating whether or not they should, and if so how, to move forward with hydraulic fracturing of shale in two counties in the state. Failed Gov. Martin O’Malley appointed a commission nearly three years ago to study it. A couple of studies have been created with two more still to go–due by August 1st of this year. The two remaining studies are nebulous “heath effects” (sound familiar?) and economic impacts from drilling. MDN has always joked that Maryland was the only state more dysfunctional than New York when it comes to shale drilling. We were wrong–New York is at the bottom of the heap. We think Maryland could actually beat us to the drill bit. Maybe.

    However, we noticed an op-ed written by three members of the Maryland Safe-Drilling Advisory Commission, all three anti-drilling, that argues Maryland should be *more* like New York and delay. They say, in essence, “Ain’t no way those two studies can done in time.” So the answer? Delay. Hey, the delay strategy has worked in spades for NY–why not try it in MD? Here’s the op-ed (and what you get when you appoint anti-drillers to a drilling commission)…
    Read More “3 Anti-Drilling MD Commissioners Want Fracking Delayed…Surprise!”

  • Cuyahoga County | Ohio | Statewide OH | Utica Shale

    The Reason United Canceled Daily Flights Between Cleveland & OKC

    February 25, 2014February 25, 2014

    A few weeks ago MDN asked the question, Can a Single Canceled Airline Route Affect Utica Shale Development? United Airlines is canceling its daily flights to and from Cleveland’s Hopkins International Airport and Oklahoma City’s Will Rogers World Airport. It’s a big deal because the Utica’s top drillers, including Chesapeake Energy and Gulfport Energy, are headquartered in OKC, and introducing longer delays in getting from here to there may put a damper on Utica development. It’s not so far-fetched that a single canceled route could have a pretty significant impact.

    When we brought you that story two weeks ago, we assumed that UA just decided to willy nilly cancel it. But such is not the case. As Midwestern icon Paul Harvey used to say, here’s “The Rest of the Story”…
    Read More “The Reason United Canceled Daily Flights Between Cleveland & OKC”

  • Centre County | Hydraulic Fracturing | Industrywide Issues | Pennsylvania

    State College Teens Help Out with Shale Network Water Sampling

    February 25, 2014February 25, 2014

    Penn State and other organizations sponsor an initiative called the Shale Network. The Shale Network is a group of volunteers who sample local rivers and streams to ensure Marcellus drilling is not having a negative effect on local waterways. So far, we’ve not heard of a single instance where the testing has turned up a problem.

    Part of the Shale Network is the Teen Shale Network, which involves local high school students from the State College, PA area to help with the testing–as a way to educate them on field science. To which we say, great! The kids were out freezing their derriere’s off recently, taking samples in Black Moshannon State Park…
    Read More “State College Teens Help Out with Shale Network Water Sampling”

  • CONSOL Energy | Energy Companies | Ethane | Exporting | Industrywide Issues | Pipelines | Statewide WV | West Virginia

    CONSOL Feeling Heat over Ethane Exports to Europe, CEO Defends

    February 24, 2014February 24, 2014

    it's okCONSOL Energy’s CEO Brett Harvey must be getting some heat over the company’s recent announcement that they have signed an agreement to export ethane from the Marcellus to Europe (see CONSOL to Begin Ethane Shipments Next Year–to Europe?!). Why would we say CONSOL is getting blowback? Because Harvey penned an op-ed that appears in The Intelligencer/Wheeling News-Register giving a spirited defense of their decision. The gist of Harvey’s points, if we might summarize, is this: CONSOL has deep roots and is committed to WV; there’s plenty of ethane to go around, including for exports (and exports bring money into WV); CONSOL is also going to sell ethane to the Odebrecht ethane cracker when/if it gets built; in the meantime, selling ethane to Europe means CONSOL will have more money to invest in WV.

    Here’s Harvey’s “it’s OK” op-ed:
    Read More “CONSOL Feeling Heat over Ethane Exports to Europe, CEO Defends”

  • Energy Services | Industrywide Issues | Pipelines | Transco | Williams

    Williams Plans $2.1B Transco Pipeline Expansion, 100% Sold Already

    February 24, 2014February 24, 2014

    Amidst the bad news for Williams last week that the company is being targeted by corporate raiders (see Evil Corporate Raiders Double Investment (& Control) in Williams), was a little bright spot of good news. The company announced they plan to expand the Transco pipeline carrying cheap Marcellus Shale gas (mostly from PA) to the Eastern Seaboard–what they call the Atlantic Sunrise Expansion of the Transco. The good news is that nine drillers have signed binding contracts, already sopping up 100% of the planned 1.7 million dekatherms of expansion. The new customers were not named in the announcement.

    Williams plans to spend $2.1 billion on the expansion. They will file a request with the Federal Energy Regulatory Commission (FERC) in March to get permission to…file a pre-filing. Yeah, it’s complicated–but that’s life in the midstream. Here’s the announcement from Williams:
    Read More “Williams Plans $2.1B Transco Pipeline Expansion, 100% Sold Already”

  • Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Ohio | Statewide OH | Utica Shale

    Expect “Frackgate” to be an Issue in Ohio for a While

    February 24, 2014February 24, 2014

    Anti-drillers in Ohio, like the Sierra Club, have dubbed the “revelation” that the Ohio Dept. of Natural Resources (ODNR) once crafted a communications plan to deal with nutjobs (like them) a scandal, so they’ve take to calling it “frackgate” (see ODNR Ticks Off Anti-Drilling Sierra Club with Drilling PR Plan). Relatedly, we also told you about Gov. John Kasich already throwing in the towel and admitting defeat on the matter of drilling in a single state forest and two state parks (see The Disgusting PR Mess in Ohio – No One Smells Pretty).

    You can expect “frackgate” to continue to be an issue in Ohio for a while because of the upcoming governor’s race. As we previously pointed out, the liberal Dems never let a good manufactured controversy (or crisis) go to waste. They’re now whispering about Kasich’s “enemies list” from the ODNR plan (even though Kasich had nothing to do with authoring the PR plan). By the way–they are enemies–of truth and common sense and reasonableness. Being good libdems, they will continue to harp on the “frackgate” issue, using a sycophantic press. Here’s the latest example of an article with absolutely no new information, the only purpose of which is to keep the story alive and in the minds of voters:
    Read More “Expect “Frackgate” to be an Issue in Ohio for a While”

  • Cuyahoga County | Meetings | Ohio | Statewide OH | Utica Shale

    Confab in Cleveland: Utica’s Best Opportunities & Biggest Fears

    February 24, 2014February 24, 2014

    Several speakers at last week’s Crain’s Cleveland Business Shale Summit 2014 predicted a major ramp-up in drilling in the Utica Shale during 2014. Of note: one speaker said based on his informal survey he believes the number of drilling rigs in the play will zoom from 40 to 60 or more by early next year. Another speaker said the Utica looks and behaves a lot like the Eagle Ford Shale play in Texas–and that’s a very good thing. The biggest fears by those in the know? Over-taxation and over-regulation–both issues very much alive in the state legislature right now.

    Here’s an excellent run-down on what happened at the Summit by intrepid reporter Bob Downing from the Akron Beacon Journal, including which counties are believed to hold the best drilling opportunities:
    Read More “Confab in Cleveland: Utica’s Best Opportunities & Biggest Fears”

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

    PA Supreme Court Won’t Reconsider Act 13, Impact Fee Now in Doubt

    February 24, 2014February 24, 2014

    The Pennsylvania Supreme Court continues their lunacy. On Friday they obstinately said they would not revisit their decision on the Act 13 Marcellus drilling law passed in early 2012 (see Ongoing Fallout from PA Supreme Court’s Wrong Act 13 Decision). PA Gov. Tom Corbett asked them to reconsider but the haughty response is a big “no way.” And so the very real possibility that the Supreme Court has just shut off the spigot to $200 million+ per year in impact fees. The Supremes vacated large sections of the Act 13 law that involve the collection and distribution of the Act 13 impact fee, a fee that has benefited countless communities around the state–particularly those where drilling’s impact is felt the most (hence the name). Now? Screw you seems to be the attitude of the justices.

    And so we hope the seven “brave” townships that sued and kept suing are happy that they’ve just hosed the entire state with their actions–spoiling it for everyone. Congratulations…
    Read More “PA Supreme Court Won’t Reconsider Act 13, Impact Fee Now in Doubt”

  • Chesapeake Energy | Energy Companies | Greene County (PA) | Lease & Royalty Payments | Pennsylvania

    Landowner Discovers Chesapeake has $500M Lien on His Property

    February 24, 2014February 24, 2014

    This one has to go in the “read your contract carefully before you sign, and never, ever sign without a lawyer” category. A Greene County, PA landowner leased his property to Chesapeake Energy a few years ago. His land hasn’t yet been added to a drilling unit. He recently wanted to refinance his mortgage, but the credit union phoned him up with a “small” problem: Chesapeake has put a $500 MILLION lien against the lease his property. Normally the lien is against the oil and gas rights, but in the case of this landowner, it’s not specified in the contract, meaning the lien is against the property itself. And he’s not able to refinance.

    Notice the landowner’s advice to other landowners in the last sentence of this story (and TAKE HEED)…
    Read More “Landowner Discovers Chesapeake has $500M Lien on His Property”

  • Accidents | Chevron | Energy Companies | Greene County (PA) | Industrywide Issues | Pennsylvania

    Greene County Chevron Well Fire: 7H Well Capped, 6H in Few Days

    February 24, 2014February 24, 2014

    Chevron reports that as of yesterday (Sunday) afternoon, Wild Well Control has successfully capped one of two leaking gas wells in Dunkard Township, Greene County, PA. The well capped was the Lanco 7H. However, work to cap the second well at the pad, the 6H, is up next and expected to take “several days” to complete. These are the wells that caught fire after an explosion occurred as workers were completing a hook-up of the 7H (see Explosion & Fire at Chevron Well in SWPA – 1 Person Missing). Unfortunately the explosion and fire took the life of one contract worker (see Remains of Chevron Contractor Found at Greene County Well Site).

    The latest couple of updates from Chevron about the accident, the fire and capping of the wells:
    Read More “Greene County Chevron Well Fire: 7H Well Capped, 6H in Few Days”

  • Allegheny County | Economic Impact | Industrywide Issues | Pennsylvania | Supply Chain

    Pittsburgh Co Figures Out How to Tap Marcellus Supply Chain

    February 24, 2014February 24, 2014

    The article below is of the kind that fascinates MDN. It’s about a small tool and die manufacturer in Pittsburgh chasing new business in the Marcellus (and Utica) Shale industry. There are some important lessons learned by the manufacturer: it’s not easy and it’s not quick to plug in to the Marcellus supply chain. Certifications make it easier–but depending on the cert, it costs big money and takes time. Bottom line: There is no quick and easy route to getting your piece of the Marcellus pie. You’re going to have to work and work hard–but then, that’s the way business has always been!

    Here’s an instructive tale of hope, determination and ultimately success in plugging in to the Marcellus supply chain:
    Read More “Pittsburgh Co Figures Out How to Tap Marcellus Supply Chain”

  • Pennsylvania | Statewide PA

    More Analysis of PA’s 2H 2013 Production Numbers – from NGI

    February 24, 2014February 24, 2014

    The sharp editors and analysts at NGI’s Shale Daily did a deep dive on the production numbers released last week by the PA Dept. of Environmental Protection and came up with some interesting observations. Among them: production hit 3.3 trillion cubic feet for the year, which is up 1.3 Tcf from 2012 (an amazing 62% increase). Drillers added 700 new wells in the second half of 2013. Pennsylvania State University’s Marcellus Center for Outreach and Research (MCOR) estimates total production will hit 4.5 Tcf by the end of 2014.

    Also among the gems are the top five Marcellus producers in 2013 (listed below), which collectively produced 60% of all output in the PA Marcellus last year…
    Read More “More Analysis of PA’s 2H 2013 Production Numbers – from NGI”

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

    New Staffers on Way at PA DEP O&G Courtesy Higher Permit Fees

    February 24, 2014February 24, 2014

    PA’s Secretary of the Dept. of Environmental Protection, Chris Abruzzo, told lawmakers last week that he plans to hire “several dozen” new staffers in the oil and gas regulation area of the DEP by using new money from a bump up in well permitting fees. Abruzzo said the current 83 inspectors in the field are enough to get the job done, but what they do need is extra help back in the office–support staff.

    MDN told you last September that well permit fees are set to go up 56%–from $3,200 per horizontal well to $5,000 (see Coming Soon: PA Drillers to Pay 56% More for Marcellus Permits). The new fee was approved by the DEP’s Environmental Quality Board but needs several more approvals before going into effect (expected soon). Once it does, the help wanted ads will begin to run…
    Read More “New Staffers on Way at PA DEP O&G Courtesy Higher Permit Fees”

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