Marcellus Drilling News

Lease & Royalty Payments | Ohio | Statewide OH

Lease Signing 101 for Landowners – A Short Q&A with OH Attorney
January 23, 2014January 23, 2014

What should landowners know–what questions should they have answers for–before they sign an oil and gas lease? Attorney Dan Gerken from Ohio law firm Bricker & Eckler tackles the important questions landowners should know the answers to in an online post that we think of as “lease signing 101.” It doesn’t hurt to cover the basics from time to time as new landowners are approached and begin the process of trying to figure out what they should do.

Here’s Dan’s good all-around “basics” Q&A advice:
Read More “Lease Signing 101 for Landowners – A Short Q&A with OH Attorney”
Economic Impact | Energy Services | Fayette County | Industrywide Issues | Jobs | Pennsylvania | Williams

Williams Expands in PA Again, Adds Local HQ in Fayette County
January 23, 2014January 23, 2014

Although headquartered in Tulsa, Oklahoma, Williams–one of the largest (perhaps the largest) midstream company in the Marcellus and Utica Shale–continues to expand its footprint in the northeast. The latest area where Williams is expanding is southwest PA–Fayette County to be precise. Williams recently opened a new local headquarters for their Williams Energy division in Fayette. The new location currently employs 75 people (so far).

Here’s the story of Williams’ ongoing expansion in SW PA…
Read More “Williams Expands in PA Again, Adds Local HQ in Fayette County”
Bradford County | Chief Oil & Gas | Energy Companies | Pennsylvania

Chief O&G Adds Field Office/Jobs in Bradford County, PA
January 23, 2014January 23, 2014

Chief Oil & Gas is expanding–in Wyalusing, PA. Where the heck is Wyalusing (population 564)? Smack in the middle of Bradford County, not far from Towanda, PA. Bradford is one of (perhaps the most) drilled Marcellus Shale counties in the state. It certainly makes sense for Chief to set up shop there–especially since Chief owns 210,000 acres of leases and operates 100 wells in the area!

The new field office in Wylausing consists of three trailers and 12 employees–at least for now…
Read More “Chief O&G Adds Field Office/Jobs in Bradford County, PA”
Industrywide Issues | Research

Japan Researchers Say Life Wouldn’t have Begun without Natgas
January 23, 2014January 23, 2014

Anti-drillers seems to be susceptible to believing in fairy tales–like the myth of man-made global warming. Here’s a new fairy tale anti-drillers may not like so much. This one comes from researchers at the Tokyo Institute of Technology (TIT). In a press release laced with a lot of maybes, could-of’s and probably’s, the bright minds at TIT have a new theory: One of the key substances found on earth today was a necessary component in the formation of life on earth–it was a necessary ingredient in the primordial soup of life. And what, you may ask, is that key, critical chemical compound? CH4…otherwise known as methane…otherwise known as natural gas.

Oh no! Say it ain’t so!! Not natural gas?! Yep. The same anti-drillers who tell you the world will end by burning natural gas wouldn’t even be here (according the TIT fairy tale) without it. Talk about ironic…
Read More “Japan Researchers Say Life Wouldn’t have Begun without Natgas”
Best of the Rest

Marcellus & Utica Shale Story Links: Thu, Jan 23, 2014
January 23, 2014January 23, 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, Jan 23, 2014”
Energy Services | Industrywide Issues | Litigation | MarkWest Energy | Pennsylvania | Pipelines | Processing Plants | Regulation | Sunoco Logistics | Washington County

PA Judge Hears Mariner East NGL Pipeline Eminent Domain Case
January 22, 2014January 22, 2014

Sunoco Logistics–and for that matter, MarkWest–have a lot riding on a single court case in Washington County, PA. It might be a bit melodramatic to say the future of the Mariner East NGL (natural gas liquids) pipeline hangs in the balance, but it certainly is not inaccurate to say the case could cause an extended delay–if it goes the “wrong” way (for Sunoco). What’s the case about?

Sunoco’s Mariner East “refined products” pipeline spans the entire state of Pennsylvania. In order to connect to that pipeline to ship propane and ethane to the Marcus Hook refinery near Philadelphia, Sunoco first has to build a 50-mile feeder pipeline from the MarkWest processing plant in Houston (Chartiers Township) to Delmont (see the Sunoco map below). The problem is, a group of landowners in Washington County won’t play ball and lease their land to Sunoco to bury the pipeline. Sunoco got tired of negotiating with the recalcitrant landowners, and changed tactics to declare it (Sunoco) has eminent domain power under PA state authority. They sue the 25 landowners for force them to allow the pipeline. The landowners sued back arguing the 50-mile pipeline should come under federal, not state, authority. One of the 25 cases is being used as a proxy for the others and that case was just argued yesterday before a PA judge. A decision, according to the judge, will be “prompt”…
Read More “PA Judge Hears Mariner East NGL Pipeline Eminent Domain Case”
Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

CSSD Makes Case for Quasi-Regulation of Marcellus Drilling
January 22, 2014January 22, 2014

Yesterday MDN told you that the Center for Sustainable Shale Development (the CSSD) is back, in a big way (see Center for Sustainable Shale Comes Roaring Back (to Life)). About the time we posted that story, we received a number of announcements from the CSSD. One of those announcements was about a session for the press–to listen to and ask questions of CSSD interim director Andrew Place (from EQT) and former governor and EPA administrator Christine Todd Whitman. MDN dialed in to listen, this is what we heard…
Read More “CSSD Makes Case for Quasi-Regulation of Marcellus Drilling”
Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

Are CSSD’s Standards Really Needed? Comparison with PA/OH/WV/Feds
January 22, 2014January 22, 2014

The Center for Sustainable Shale Development (CSSD) has a big hurdle to leap–convincing drillers to spend a lot of money and time (up to $50,000 and hundreds of hours) to become CSSD certified–and then ongoing monitoring to keep that certification. They’re using a carrot and stick. The carrot is that if you become certified, you’re elite, you’re “in”, you’re special–and landowners will be able to trust you. You’ll have the “Goodhouskeeping seal of approval” on your drilling because you’ve got the cert. The stick is that if you don’t get certified, you’re suspect, you’re in the “out” crowd, you’re not “one of us” and therefore landowners should be wary of signing a lease to have you drill on their property.

Beyond the perceptions, the real question is whether or not the standards themselves will achieve what they say they will achieve–safer and “sustainable” drilling that does a minimum amount of damage to the environment while retrieving low-cost, more efficient and better for the environment natural gas. But wait (you may ask), don’t the states and even the feds already have a bookshelf full of standards and regulations drillers must follow? Indeed they do. The CSSD says, in essence, those standards are fine, but our (CSSD) standards are far better. The crux of the CSSD argument is that you should voluntarily (with peer pressure and cajoling) follow our standards because we have PA, OH, WV and even the feds beat on how strict and yummy good for the environment our standards are over theirs. In fact, the CSSD has produced a chart (embedded below) to “prove” it…
Read More “Are CSSD’s Standards Really Needed? Comparison with PA/OH/WV/Feds”
CONSOL Energy | Energy Companies

CONSOL Update: Spending $1.5B in 2014, Production Target 235 Bcfe
January 22, 2014January 22, 2014

CONSOL Energy continues its rapid transformation from coal producer to natural gas producer. Yesterday the company issued an update reiterating their intention to hike natural gas production by 30% this year. To do it, they plan to spend up to $1.5 billion on drilling and capital investments. That’s a whole lotta dough. Most of that will be spent in the Marcellus and Utica Shale (CONSOL is headquartered in Pittsburgh).

Below is CONSOL’s announcement in which they tell us where, and how, they plan to dramatically increase natural gas production in 2014:
Read More “CONSOL Update: Spending $1.5B in 2014, Production Target 235 Bcfe”
CONSOL Energy | Energy Companies

New CNX Gas COO Tim Dugan – Marcellus & Utica Experience
January 22, 2014January 22, 2014

Back in November, MDN told you that the top dog guy who runs the exploration and production (E&P) division of CONSOL Energy, Randy Albert, is retiring (see CNX Gas Chief Randy Albert Retiring, Search On for Successor). We were truly sorry to see him go. We’ve met Randy and liked him.

Today, we’re happy to report a new COO for the E&P division–someone who’s been around the Marcellus/Utica block a few times and knows the ropes well: Tim Dugan. Here’s the CONSOL announcement about Tim taking the reigns at CNX Gas…
Read More “New CNX Gas COO Tim Dugan – Marcellus & Utica Experience”
Industrywide Issues | Ohio | Statewide OH | Taxation | Utica Shale

OH House Dem Makes Another Run at Nosebleed 7.5% Severance Tax
January 22, 2014January 22, 2014

The reliably anti-drilling Ohio State Representative from Youngstown, Robert F. Hagan, would prefer to ban shale drilling outright. Since that’s not going to happen in OH (at least not any time soon), he wants to kill it another way. Last June Hagan introduced a bill in the OH House that would enact a 7.5% drilling tax on Utica Shale drilling, which would of course effectively kill all Utica drilling henceforth (see Youngstown Democrat State Rep Wants to Hike Severance Tax to 7.5%). You have to hand it to those OH Dems–they’re real johnny one-notes: tax more, spend more.

Hagan is trotting out his obscenely high tax bill once again, trying to whip up support. Good luck with that one Bobby…
Read More “OH House Dem Makes Another Run at Nosebleed 7.5% Severance Tax”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues

Minnesota Film Festival Bows to Pressure, Censors FrackNation
January 22, 2014January 22, 2014

It looks like the peace-loving, open-minded, love and daisies anti-drilling liberals have bullied another venue into dropping a screening of the pro-drilling (and highly recommend) FrackNation. The Frozen River Film Festival in Winona, MN said they had been pressured by libs from Mountain Film in Telluride and the Sundance Film Festival. And so they caved and went running with their tail between their legs instead of standing up for free speech and an alternative view.

Ever notice how free speech only applies when mouthy anti-drillers want to shut down a public meeting or show their propaganda somewhere–but when the other side wants to talk or show a film, it’s “off with their heads!” Hypocrites–the lot of them. Here’s an update from MDN friend and FrackNation director and star Phelim McAleer about Frozen River Film Festival’s censorship of his film…
Read More “Minnesota Film Festival Bows to Pressure, Censors FrackNation”
Best of the Rest

Marcellus & Utica Shale Story Links: Wed, Jan 22, 2014
January 22, 2014January 22, 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: Wed, Jan 22, 2014”
Chevron | CONSOL Energy | Energy Companies | EQT Corp | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Shell | Statewide PA

Center for Sustainable Shale Comes Roaring Back (to Life)
January 21, 2014

Finally, signs of life from the Center for Sustainable Shale Development (CSSD), a new independent certification organization for Marcellus Shale drillers launched with much fanfare in March of last year. Both drillers and environmentalist organizations, along with non-profits like the mostly anti-drilling Heinz Endowments, cooperated to develop a set of 15 standards drillers should meet to receive the CSSD’s official stamp of approval (see Important: Drillers & Enviros Form New Group, Launch Cert Program for MDN’s mixed feelings about the organization and its standards). Heinz Endowments president Bobby Vagt lost his job for promoting the CSSD (see Bobby Vagt Out as Pres of Heinz Endowments – Fracking Connection?).

Since launching, aside from the Vagt/Heinz flap, all has been quiet with the CSSD. However, the CSSD was busy working behind the scenes. From the beginning, Andrew Place, corporate director of energy and environmental policy for EQT has served as interim director of the CSSD. News reports are now coming fast and furious. First, environmentalist lawyer Susan LeGros from Philadelphia has been named the director of the CSSD. She’ll be making a move to Pittsburgh where CSSD HQ is located. Second, Bureau Veritas (BV) has been selected as the company to audit/evaluate companies that want to spend the $30-$100K required to become certified. After they evaluate, a 3-member panel will decide on whether they get the stamp of approval. Two of those three people are Christy Todd Whitman, former governor of NJ and former EPA chief, and former Treasury Secretary Paul O’Neill. Third, it appears to MDN that no one else has joined the CSSD beyond the initial handful of signups (Shell, EQT, Chevron, CONSOL Energy), and that no one has sought certification–although that may change now that the cert process is up and running…
Read More “Center for Sustainable Shale Comes Roaring Back (to Life)”
Dominion Energy | Energy Services | Industrywide Issues | M&A | NiSource

Midstream Melee: Dominion in the Hunt to Buy NiSource?
January 21, 2014January 21, 2014

The rumor mill is buzzing with speculation that NiSource, a $10.6 billion utility and midstream company with major operations in the Marcellus and Utica Shale, is the object of desire for Dominion, a powerhouse utility and midstream company worth $38 billion. Everyone’s denying everything, but “inside sources” assure the Associated Press that Dominion is in “advanced stages” of raising the $10B+ they need to make a purchase, and that’s causing NiSource’s stock to skyrocket.

Here’s the rumor, speculation and (very few) facts as we know them:
Read More “Midstream Melee: Dominion in the Hunt to Buy NiSource?”
Coterra Energy (Cabot O&G) | Energy Companies | Pennsylvania | Susquehanna County

PA Resident Snaps 8,000 Pictures of Cabot Well Construction
January 21, 2014January 21, 2014

MDN editor Jim Willis received an excited phone call from Susquehanna County, PA resident Janice Gavern after being pointed in our direction by Cabot Oil & Gas. Janice, who runs a goat farm with her daughter near Montrose, PA (and a cancer survivor) started a project a few years back to document the drilling of a shale well on her friend’s property. As Janice says, after she visited the site, just to “keep an eye on things” and snapped her first picture, she was hooked. And the rest, including some 8,000 pictures taken with Janice’s little digital camera, is history. At least that’s what Janice hopes.

Janice’s aim in doing a photo documentary of the drilling process is to preserve an important bit of Susquehanna County history, for future generations. Janice has selected 650 of the 8,000 pictures and compiled them into an e-book on Amazon–the first e-book of a series she’s planning. The first batch cover site preparation and building the well pad–up to the point when the drill arrives. She’s done a fabulous job, and we’re happy to help her make it known to the world. In fact, although the e-book normally retails for $9.99, you can order it FREE today and then again on Feb. 1. We recommend you head on over and download it right now. Here’s a bit more of Janice’s story as told by the Scranton Times-Tribune…
Read More “PA Resident Snaps 8,000 Pictures of Cabot Well Construction”