Marcellus Drilling News

Pennsylvania | Statewide PA

PA Gov Corbett Blocks Promotion of Moonlighter at Game Commission
March 14, 2014March 14, 2014

Last August MDN told you about the moonlighting PA Game Commission employee, William A. Capouillez, the director of the Bureau of Wildlife Habitat Management at the Game Commission (see PA Director of Game Commission Double-Dipping with Gas Leases?). Capouillez’s day job is to oversee leasing 1.4 million acres of public game lands for oil and gas drilling. But in his off hours he negotiates leases for oil and gas drilling for private landowners–sort of an “on the side” landman. When it all came to light in the *Philly Inquirer* last year, it prompted an ethics investigation (see PA Game Comm. Head Not Afraid of Gas Leasing Ethics Investigation).

How’s the investigation going? No one will say. However, the PA Game Commission is considering promoting Capouillez to the top job of executive director. PA Gov. Tom Corbett (Republican) isn’t impressed. In fact, he’s sent a warning shot across the bow of the independent 8-member board of the Commission, saying he will actively work to block the promotion…
Read More “PA Gov Corbett Blocks Promotion of Moonlighter at Game Commission”
Best of the Rest

Marcellus & Utica Shale Story Links: Thu, Mar 13, 2014
March 14, 2014March 14, 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, Mar 13, 2014”
Earthquakes | Energy Companies | Hilcorp Energy | Hydraulic Fracturing | Industrywide Issues | Mahoning County | Ohio

# of Youngstown Earthquakes go from 2 to 11 – Fracking to Blame?
March 13, 2014March 13, 2014

Two days ago MDN told you about a pair of earthquakes near Youngstown, OH (see 2 New Earthquakes Near Youngstown, OH – Fracking Connection?). That number has now grown. So far there have been a total of 11 measurable earthquakes ranging from 1.2 (not felt by humans) to 3.0 (barely felt by some humans). We suspect most people around Mahoning County didn’t feel anything, but that doesn’t stop mass hysteria when it’s announced that there have been a series of earthquakes and the only thing (supposedly) going on in the area is drilling and fracking.

As we previously pointed out, we are aware of one instance–in England–where fracking over an active fault caused an earthquake. So it can happen. But that’s one time out of 60,000+ horizontally, hydraulically fractured shale wells worldwide (maybe more than that now). Statistically it’s zero. We need to keep perspective in this situation. Initially the Ohio Dept. of Natural Resources (ODNR) said there are no active Class II injection wells in the area pumping waste fluids deep below the surface for disposal, and so the well being drilled and fracked by Hilcorp near the epicenter of the quake looks like the prime candidate as the cause. But one news story we’ve read (below) seems to cast doubt. There may be injection wells, which also have been known to cause earthquakes when injecting near a fault, operating in the area…
Read More “# of Youngstown Earthquakes go from 2 to 11 – Fracking to Blame?”
Allegheny County | CONSOL Energy | Energy Companies | Industrywide Issues | Pennsylvania | Regulation

Local Town Slows CONSOL’s Plan to Drill at Pittsburgh Airport
March 13, 2014March 13, 2014

More than a year ago the Pittsburgh International Airport, located about 20 miles west of downtown Pittsburgh, elicited bids to have shale drilling done on 9,263 acres of airport-owned land. After some toing and froing, CONSOL Energy was awarded the contract. After some more toing and froing, CONSOL raised the lease signing bonus to 50 million smackeroos (see CONSOL Increases Bonus Offer to Pgh Airport by 2.4 Times to $50M). Then the real work began. CONSOL has put together a plan to drill 47 wells on 6 well pads, building three water impoundments (see CONSOL Energy Reveals Drilling Plan for Pittsburgh Airport). CONSOL is going to extraordinary lengths with the airport project, including the use of all-electric drilling rigs (a first in the Marcellus). Problem is, three people on the Findlay Township board have the power to approve, or not, the permits to drill. Findlay has CONSOL by the proverbial short hairs, especially since the right to zone oil & gas activities by local municipalities was upheld when the Act 13 law was trampled by seven PA towns that sued and won in state Supreme Court–a decision handed down just a few months ago.

Last night CONSOL presented their safety plan to the three Findlay board members and interested local residents who attended the board’s regular meeting. The bone of contention (for some local residents) is the location for one of the proposed drill pads–about a half mile from a populated neighborhood. When the hour plus presentation by CONSOL was over, and local residents had had their say, the Findlay board members decided to postpone a decision to approve CONSOL’s permits, yet again…
Read More “Local Town Slows CONSOL’s Plan to Drill at Pittsburgh Airport”
Industrywide Issues | Ohio | Statewide OH | Taxation | Utica Shale

OH Gov. Kasich’s One-Track ‘Tax the Utica’ Mindset
March 13, 2014March 13, 2014

You have to hand it to Ohio’s RINO Gov. John “foreigner hunter” Kasich–he has a single-track mind when it comes to taxing Utica Shale drilling. He wants a piece o’ that drillin’ pie so he can transfer the money from those who produce (the drillers and the landowners), to those who don’t (voters). Kasich is hell-bent on assessing a 2.75% tax on all Utica Shale drilling. The Ohio Oil and Gas Association (OOGA), which did support a smaller increase, is pushing back against Kasich’s latest demand saying it’s “unacceptable to the association.” Good for them–someone needs to be the voice of reason on this issue.

Here’s more on Kasich’s desire to take the easy way out–to tax more–instead of manning up and doing the right thing–cutting more:
Read More “OH Gov. Kasich’s One-Track ‘Tax the Utica’ Mindset”
Ohio | Statewide OH | Utica Shale

Fired ODNR Official Returns with Views on Best Locations in Utica
March 13, 2014March 13, 2014

Larry Wickstrom used to be Ohio’s official state geologist and chief of the ODNR’s Division of Geological Survey. He was fired in May 2012 because he updated and released a map showing new boundaries for the Utica Shale–where the best places to drill would be located (see Did This Map Get the Ohio State Geologist Fired?). The map update caused some of the previous lines to change, and that upset a few people, especially Larry’s political bosses. That map has since changed by quite a bit. Drilling has drifted south to counties like Harrison, Guernsey, Belmont, Noble and Monroe.

The very talented Wickstrom had been employed for 29 years by ODNR, but his exit didn’t mean he was washed up. Far from it. Larry is back (in private business). Last week he shared his keen and experienced insights with the 1,500 people who attended the recent Ohio Oil and Gas Association winter meeting in Columbus on the latest thinking about the best places to drill in the Ohio Utica. He notes that the sweet spot for Utica drilling is much smaller than folks thought just a few years ago…
Read More “Fired ODNR Official Returns with Views on Best Locations in Utica”
Energy Companies | Forced Pooling | Hilcorp Energy | Industrywide Issues | Lawrence County | Pennsylvania

Forced Pooling Circus (ie Hearing) Coming to Lawrence County, PA
March 13, 2014March 24, 2014

The circus will come to town in New Castle (Lawrence County), PA on March 25 and 26. No, not Ringling Bros. and Barnum & Bailey, but something sure to be far more entertaining. There will be a PA Dept. of Environmental Protection hearing on Hilcorp’s request to force four landowners to allow drilling under their property. We first brought you this story last October (see Hilcorp Uses PA Forced Pooling Law Against Lawrence Cty Landowner). MDN has always held a dim view of forced pooling, so you can’t say we didn’t warn them. Hilcorp has brought this on themselves by invoking a 1961 PA law to sue the landowners to allow drilling.

Here’s the latest, including details on where the circus, er, hearing will be held…
Read More “Forced Pooling Circus (ie Hearing) Coming to Lawrence County, PA”
Industrywide Issues | Landfills | Regulation | Statewide WV | West Virginia

WV Drilling Cuttings in Landfill Bill May Get 2nd Life, If…
March 13, 2014March 13, 2014

Two days ago MDN told you about the West Virginia legislature’s failure to act on House Bill 4411 that would codify into law the current directive from the Secretary of the Dept. of Environmental Protection that provides guidelines on accepting drill cuttings at landfills (see WV Legislature Fumbles the Ball on Landfill Bill, Does Nothing). It’s possible that the bill will get a second chance at legal life–if Gov. Earl Ray Tomblin calls for a special session and if the bill is on his list to consider. In WV the legislature meets for 60 calendar days at the beginning of they year, each year. They need to get their work done during those two months. After that, the Governor can call them back, but they can only take up those bills specified by the Gov.

Here’s more detail of what went on “behind the scenes” as WV legislature grappled with HB4411 during the closing days of the regular session:
Read More “WV Drilling Cuttings in Landfill Bill May Get 2nd Life, If…”
Anti-Drilling/Fossil Fuel | Butler County | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Pennsylvania | Rex Energy

Earth to Mars (School District) – Time to Check into Funny Farm?
March 13, 2014March 13, 2014

We wonder what they teach at the Mars Area School District (Butler County, PA). One thing they don’t teach is logic and scientific inquiry. Probably too busy showing American Idol re-runs to the kiddies to bother with heftier education pursuits. How else can you explain a school board, and parents, who turn down $1 million+ to lease 175 acres of school land for shale drilling that would happen more than a mile below solid rock with no adverse affects and with no surface disturbances? We’d call it mass insanity (time to check into the local psychiatric hospital)–but that would be unkind.

Tuesday night the Mars Area School District school board voted 9-0 to reject an offer from Rex Energy to lease the school’s property, which sits next to private property Rex has already leased and will still drill on anyway. The Rex offer was $4,000 per acre up front as a signing bonus, and another $330,000 in advance royalties, for a grand total of $1 million. Drilling will go on all around the school, but those sharp-as-a-tack board members have now denied the children $1 million they could of had. Hey, it’s always for “the children,” right? Heartless board. The anti-drillers present for the vote were positively orgasmic that the school board voted it down unanimously. Go figure…
Read More “Earth to Mars (School District) – Time to Check into Funny Farm?”
Best of the Rest

Marcellus & Utica Shale Story Links: Thu, Mar 13, 2014
March 13, 2014March 14, 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, Mar 13, 2014”
Accidents | Columbia Pipeline Group | Energy Services | Industrywide Issues | Kanawha County | NiSource | Pipelines | West Virginia

NTSB Faults NiSource/Columbia for WV Pipeline Explosion in 2012
March 12, 2014March 12, 2014

On December 11, 2012, a portion of the Columbia Gas Transmission pipeline (owned by Nisource) exploded near Sissonville, WV, 10 miles north of Charleston. The resulting fire burned for more than an hour and shut down a portion of nearby Interstate 77 for days (see Columbia NatGas Pipeline Explodes Near Charleston, WV). It’s been a long time coming, but on Monday the National Transportation Safety Board (NTSB), that did a full investigation of the explosion, turned in their final report. It was pretty damning for NiSource/Columbia. The conclusions of the investigators are that a) the pipe had corroded in that section–a long time ago, and b) Columbia hadn’t inspected that section of pipeline since (unbelievably) 1988. In other words, it was an accident waiting to happen.

Below we have the press release from the NTSB with their high level findings, then the full 32-page report released Monday, and finally, the lame response issued by NiSource/Columbia “thanking” the NTSB for just ripping them a new one…
Read More “NTSB Faults NiSource/Columbia for WV Pipeline Explosion in 2012”
Industrywide Issues | Research

April EIA DPR: Marcellus Continues Reign as King of the Shale
March 12, 2014March 12, 2014

A periodic check-in of our favorite Energy Information Administration report, the Drilling Productivity Report (DPR), shows the Marcellus Shale continues to be the United States’ (and world’s!) leading shale play when it comes to production of natural gas. The April DPR, released two days ago, shows the Marcellus is forecast to increase production by an average 288 million cubic feet per day (Mmcf/d) in April over March. The increase, as always, comes from a mix of newly drilled wells coming online and previously drilled wells.

Below we have analysis of the latest numbers, along with the full DPR for April, yesterday’s EIA Today in Energy update (which talks about the increasing efficiency of new wells in the Marcellus), and screen shots of two charts on the DPR home page, charts they don’t include in the PDF (for whatever reason, but should be)…
Read More “April EIA DPR: Marcellus Continues Reign as King of the Shale”
Allegheny County | Economic Impact | Energy Companies | Industrywide Issues | Jobs | Noble Energy | Pennsylvania | Washington County

Noble Energy’s Huge Vote of Confidence in the Marcellus
March 12, 2014March 12, 2014

Noble Energy has big plans for the Marcellus. Yesterday the company confirmed they will be new tenants in a huge new office building going up in the Southpointe business park near Pittsburgh. The new building being built by Horizon Properties will be 208,000 square feet, of which Noble is leasing 138,000 square feet. Noble’s president & CEO David Stover says the Marcellus is “the premiere gas play in the United States,” and the Marcellus figures prominently in Noble’s future plans.

Noble plans to employ 200 people in the new facility by the end of this year, and eventually–400-450 people at the facility. PA welcomes Noble to the Marcellus!…
Read More “Noble Energy’s Huge Vote of Confidence in the Marcellus”
Industrywide Issues | Landfills | Ohio | Regulation | Statewide OH | Utica Shale | Wastewater

MDN’s Guide to New TENORM Rules for OH Utica Drillers
March 12, 2014March 12, 2014

Last year, the Ohio state legislature passed an omnibus “everything but the kitchen sink is in there” bill (HB59) that covered, among other things, a requirement that oil and gas drillers need to test drilling waste for TENORM–or Technologically Enhanced Naturally Occurring Radioactive Material. Drillers need to test for TENORM (or naturally occurring radioactivity) in wastewater and drill cuttings under certain conditions, according to the legislation. MDN tracked down House Bill 59 and read it. We include the relevant section from the massive 699-page law below.

It appears to MDN’s eye that if OH shale drillers recycle the waste and re-use it on site (in the case of fluids), there is no need to test. Likewise, if they cart fluids to another nearby drill site for re-use, no need to test. If they dispose of it via a Class II injection well–no need to test. That covers about all of the ways Utica drillers handle liquid waste. It seems to us the only real requirement will be to test drill cuttings (leftover rock and dirt) for radioactivity before disposing of them in landfills. The reason this is news now is because the Ohio Dept. of Health was charged with drafting guidelines for how such materials should be sampled and analyzed to determine whether TENORM levels are high enough to warrant special treatment. The DOH recently released those guidelines, which OH drillers will now need to pay attention to when it comes to testing at the drill site…
Read More “MDN’s Guide to New TENORM Rules for OH Utica Drillers”
Hydraulic Fracturing | Industrywide Issues | Regulation | Statewide WV | West Virginia

Impact of WV’s New Chemical Tank Law on Marcellus Drillers
March 12, 2014March 12, 2014

An important update on the new rules coming to West Virginia drillers impacting how they use above ground chemical storage tanks. As MDN previously reported, the WV legislature passed SB373 in the closing hours of the 2014 legislative session (see Fate of 3 WV Laws that Impact Marcellus/Utica Drilling). That bill was in response to a chemical leak that affected the drinking water for 300,000 WV residents. Even though the leak was not related to oil and gas drilling (it was related to coal mining), the new rules governing above ground storage tanks for chemicals affect a number of industries, including the Marcellus Shale drilling industry.

Although the final language of the bill has yet to be set in stone and signed into law, enough of it is now known that it can be analyzed. The bright legal beagles at the energy law firm of Lewis Glasser Casey & Rollins, PLLC have done just that. Here is how the newly minted SB373, once signed into law, will impact WV’s oil and gas industry:
Read More “Impact of WV’s New Chemical Tank Law on Marcellus Drillers”
Economic Impact | Housing | Industrywide Issues | Jobs | Ohio | Statewide OH | Supply Chain | Utica Shale

Investment Firm Backs 3 Hotels, in Hunt for Restaurants in Utica
March 12, 2014March 12, 2014

Energy investment firm Drill Capital is not only in the process of building one hotel in the Utica Shale with plans on the boards to build two more (all in eastern Ohio), the company also wants to lure a restaurant chain to the Utica too. You don’t put up investors’ money to build hotels and restaurant in rural locations unless you firmly believe the business will be there for years to come. That’s precisely what Drilling Capital’s young founder and managing partner, Farid Guindo, believes…
Read More “Investment Firm Backs 3 Hotels, in Hunt for Restaurants in Utica”