Marcellus Drilling News

Economic Impact | Industrywide Issues | Jobs | Ohio | Pipelines | Processing Plants | Statewide OH | Supply Chain | Utica Shale

New List of Shale-Related Infrastructure/Economic Projects in OH
April 1, 2014April 1, 2014

Researchers with the Ohio energy law firm of Bricker & Eckler LLP have done us all a huge favor. They have assembled a really cool list infrastructure and business projects county by county in Ohio that are known or rumored–all related to the Utica/Marcellus Shale industry. The list (full copy embedded below) lists the county where the project is occurring, the company(s) involved, a brief description of the project and if known, the projected amount of investment.

Workers looking for jobs, businesses that want to get a piece of the action (supply chain), competitors and more will want to review this awesome list. Yes, it does bear a passing resemblance to our own list of infrastructure projects in Vol. 2 of the Marcellus and Utica Shale Databook. Some of the same projects are listed. However, Bricker & Eckler’s list is specific to Ohio and includes many smaller non-pipeline related projects. Kudos to them for producing a great report…
Read More “New List of Shale-Related Infrastructure/Economic Projects in OH”
Anti-Drilling/Fossil Fuel | Athens County | Crime | Industrywide Issues | Ohio

“Athens 8” Criminal Protesters Receive Slap on Wrist by OH Court
April 1, 2014April 1, 2014

Eight loud, obnoxious and anything-but-peaceful protesters were arrested in February near Athens, OH for trespassing and illegally blocking the entrance to an injection well site (see Break the Law in OH, Get an Award – Anti-Drilling Nuttery on Display). The eight alleged criminals–charged with criminal trespass–have successfully pleaded their crimes down to disorderly conduct and let go with a slap on the wrist by an Ohio court.

One of the protesters, a “sustainable” organic farmer, Gilbert (Kip) Rondy, someone who operates “unheated greenhouses” (apparently that’s a badge of honor instead of a sanity test), read a statement to the judge that attempts to excuse his and the other protesters’ lawless actions by saying they had to do it to protect Mother Earth. This one will give you a chuckle like it did us…
Read More ““Athens 8” Criminal Protesters Receive Slap on Wrist by OH Court”
Energy Services | GreenHunter Resources | Industrywide Issues | Regulation | Wastewater

ORSANCO Ready to Monitor Ohio River for Barge Frack Waste Spills
April 1, 2014April 1, 2014

The Ohio River Valley Sanitation Commission (ORSANCO), an interstate commission representing eights states and the federal government, was set up in 1948 to monitor, issue warnings about and correct pollution issues in the Ohio River. In particular, ORSANCO handles spills from barges or boats using the mighty Ohio. According to Jerry Schulte, manager of source water protection and spokesman for ORSANCO, the organization is up to the task of protecting the Ohio from any accidents that may include barge shipments of frack wastewater.

Not only are they up to the task, ORSANCO believes the Coast Guard is now very close to allowing it, and ORSANCO is ready…
Read More “ORSANCO Ready to Monitor Ohio River for Barge Frack Waste Spills”
Butler County | Energy Companies | Pennsylvania | Rex Energy

Rex Predicts Record 1Q14 Production, Bank Floats Extra $50M
April 1, 2014April 1, 2014

Rex Energy’s banker apparently likes what it sees in the State College, PA-based Marcellus/Utica driller, so they’ve decided to raise Rex’s line of credit another $50 million (from $325 million to $350 million). And what’s not to like? Rex reported last week that they expect first quarter production to come in near the high end of their previous guidance numbers–close to the 118 million cubic feet per day number. Last week Rex also announced they’re adding a second drilling rig in their Butler, PA operation–and (most exciting to us) they’re drilling two stacked Upper Devonian Burkett/Marcellus tests in 2014, one of them with the new rig they’ve just added.

Here’s a pair of announcements from Rex, the operational update from last week and the good news from Rex’s banker from yesterday…
Read More “Rex Predicts Record 1Q14 Production, Bank Floats Extra $50M”
Energy Services | GreenHunter Resources

GreenHunter 2013: Revenues Up, Losses Down, Year of Transition
April 1, 2014April 1, 2014

GreenHunter Resources, the wastewater subsidiary of Magnum Hunter Resources, released their fourth quarter and full year 2013 update yesterday. The company reports revenues were up, losses were down, and they experienced “substantial growth” and “transition” in 2013.

Here’s the update:
Read More “GreenHunter 2013: Revenues Up, Losses Down, Year of Transition”
Energy Services | Industrywide Issues | Ohio | Pipelines | Statewide OH | TC Energy/TransCanada

ANR Pipeline Succeeds, Reversing Flow to Ship Utica/Marcellus Gas
April 1, 2014April 1, 2014

MDN told you a few weeks ago that ANR Pipeline, owned by TransCanada, would potentially become bi-direction and reverse flows to carry Utica and Marcellus Shale gas to the Gulf Coast–if they can secure enough commitments from shippers (see TransCanada’s ANR Pipeline to Reverse & Carry Marcellus Gas South). ANR offered up to 600,000 dekatherms (or 600 million cubic feet, Mmcf) per day of capacity in the Utica/Marcellus. Yesterday ANR announced they have met their goal–and then some. Not only have they got 600 Mmcf/d of commitments for the portion coming from the Utica/Marcellus, they’ve secured enough commitments in other locations to move a total 2 billion cubic feet (Bcf) per day along the ANR Pipeline system both north and south, which stretches 10,600 miles through the midsection of the U.S.

Here is the good news announcement from ANR that they’re going bi-directional and now have firm commitments for the next 23 (!) years:
Read More “ANR Pipeline Succeeds, Reversing Flow to Ship Utica/Marcellus Gas”
Commodity Price | Decline/Depletion Rates | Industrywide Issues | Research

Yet Another “Shale Gas Will Last Only 10 Years” Claptrap Article
April 1, 2014April 1, 2014

We spotted a long (and we do mean long) article on the Seeking Alpha investors’ website about the Marcellus Shale. Titled “Marcellus Shale: Through A Glass, Darkly,” the article has lots of charts and graphs, and a lot of math (our eyes glazeth over). We read or scanned through most of it. The author, Moshe Ben-Reuven (a former aerospace engineer, which explains the charts and math and formulas), makes some good points. But when you dig deeper, you understand his overall theme and why he spins the story he does. Ben-Reuven’s theme is that the Marcellus won’t last all that long–10 years IF we don’t export any of it. We can make it last longer if we dump water-based fracking and use alternative (i.e. expensive) fracking methods. And oh yes, shale gas is just a little stepping stone on our way to the alternative energy nirvana future that awaits us all. Shale gas is good for weaning us off nasty coal, but once that’s done, we’ll need to wean ourselves from the less-nasty (but still nasty) shale gas fossil fuel too. That’s the rough conclusion he comes to (see it in his own words below).

It won’t surprise you to learn that Ben-Reuven heads up a “green energy” company that develops biomass fuels–a technology left behind in the proverbial dust of the shale gas revolution/miracle now taking place. Which explains all of the hocus pocus numbers and story spun by Ben-Reuven. And which brings to mind the old saying: If you can’t dazzle them with brilliance, baffle them with bull…
Read More “Yet Another “Shale Gas Will Last Only 10 Years” Claptrap Article”
Best of the Rest

Marcellus & Utica Shale Story Links: Tue, Apr 1, 2014
April 1, 2014April 1, 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: Tue, Apr 1, 2014”
Anti-Drilling/Fossil Fuel | Coterra Energy (Cabot O&G) | Energy Companies | Industrywide Issues | Litigation | Pennsylvania | Susquehanna County

Judge Lets PA Anti-Driller Sip More Lattes, Attorney Claims “Big Win”
March 31, 2014March 31, 2014

Last Monday a little known anti-driller with a potty mouth from northeast PA–Vera Scroggins–had her day in court. You may recall that Vera had repeatedly trespassed on drilling sites owned by Cabot Oil & Gas in Susquehanna County and a judge slapped her with a restraining order last year. Vera said the court order prevented her from sipping lattes at the local Price Chopper grocery store (land leased by Cabot) so she got herself a lawyer from the American Civil Liberties Union and asked the judge to reconsider (see PA Anti-Drilling Activist Asks Court to Lift Cabot Restraining Order). Cabot had no objections as long as she’s still barred from active drill sites and Cabot offices. So the judge, late last week, did just that–he tweaked the restraining order to allow Vera to go sip her lattes, but nothing else has changed. That is, she’s still barred from trespassing on active drill sites and Cabot office property.

One of Vera’s attorneys claims the judge’s decision is a “big win.” Er, OK. Whatever. What Vera actually won was exactly nothing, except another 5 minutes of “fame” in local media around Montrose–population 1,617…
Read More “Judge Lets PA Anti-Driller Sip More Lattes, Attorney Claims “Big Win””
Chenango County | Energy Services | Industrywide Issues | New York | Otsego County | Pennsylvania | Pipelines | Regulation | Schoharie County | Susquehanna County | Williams

JLCNY Encourages Support of Constitution Pipeline — This Week
March 31, 2014March 31, 2014

MDN has done a fair bit of reporting on a desperately needed new natural gas pipeline due to be built from Susquehanna County, PA all the way to Schoharie County, NY. The Constitution Pipeline will be built by Williams starting later this year, if all goes according to plan (see New Marcellus Constitution Pipeline Announces “Final” Route). Last week MDN told you that both the federal EPA and Dept. of Interior have asked for more time to provide their own comments on the new pipeline (see EPA/DOI Ask for More Time to Review PA-NY Constitution Pipeline). FERC, the Federal Energy Regulatory Commission, has itself told Williams they will need to make a few adjustments to their plans (see FERC: Constitution Pipeline Should Make Changes to Lessen Impacts).

FERC will ultimately decide whether or not to allow Williams to build the pipeline. We doubt there’s much doubt about the plan–it’s almost certain to be built. FERC themselves say it’s really really needed. However, FERC must go through the motions, and one of those motions is to hold public “scoping” hearings where people (often anti-drillers) show up to gripe and moan about the plan. FERC is conducing a series of four hearings this week, starting today. The Joint Landowners Coalition of New York sent the following email (with hearing details) to request members of the JLCNY and all pro-drillers attend a meeting near them, to show support for natural gas in our region…
Read More “JLCNY Encourages Support of Constitution Pipeline — This Week”
Industrywide Issues | Pennsylvania | Research | Statewide PA | Taxation

PA Partisan Study Finds PA Needs to Soak Drillers with New Taxes
March 31, 2014March 31, 2014

The partisan Pennsylvania Independent Fiscal Office (IFO) last week released a so-called study on oil and gas taxes and concluded (surprise!) PA doesn’t pay enough in taxes (see PA Shale Industry Demonized for “Lack” of Severance Tax). The group compared apples with oranges and did it’s “best” to try and make a “fair” comparison and of course concluded PA drillers need to be drilled themselves–you know, to spread the wealth around in good socialist fashion. A full copy of the “study” is embedded below.

It seems the IFO and PA Democrats are a bit thin-skinned when sources like MDN poke holes in their precious studies and dare to call them what they are: partisan hucksterism. And so news outlets like the Pittsburgh Post-Gazette rush in to try and prop them up with “look at how fair and balanced this study really is” kinds of articles, like this one:
Read More “PA Partisan Study Finds PA Needs to Soak Drillers with New Taxes”
Lease & Royalty Payments | Meetings | Pennsylvania | Statewide PA

NARO PA Meeting: CA Speaker Says PA Needs Better Reporting
March 31, 2014March 31, 2014

More from the National Association of Royalty Owners PA chapter annual conference last week in State College, PA. One speaker who runs a California-based oil and gas appraisal firm was taking pot shots at the PA Dept. of Environmental Protection saying that twice a year reporting on production numbers is not enough–especially for those who want an accurate appraisal on what their oil and gas rights may be worth for leasing purposes.

Matt Henderson with Penn State’s Marcellus Center for Outreach and Research also chimed in with some thoughts on DEP reporting. Below is a report from the second day of the NARO event in State College…
Read More “NARO PA Meeting: CA Speaker Says PA Needs Better Reporting”
Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Energy Services | Eureka Midstream | Industrywide Issues | Pipelines | Statewide WV | West Virginia

Eureka Hunter Gets New $117M Line of Credit, Expansion Continues
March 31, 2014March 31, 2014

Eureka Hunter Pipeline, a subsidiary of Magnum Hunter, is a small but growing midstream company with most of its operations in West Virginia (see these MDN articles about Eureka Hunter and their recent expansion). Apparently they plan to keep on growing. Today Eureka Hunter announced they’ve got a new line of credit at the bank–for a cool $117 million. Their line of credit can grow to $150 million under the right conditions.

Magnum Hunter CEO Gary Evans says the new credit line means MH itself won’t have to float cash to the midstream subsidiary like it does now–meaning more flexibility and Eureka Hunter can expand faster. And that’s a good thing! Here’s the Eureka Hunter announcement posted today:
Read More “Eureka Hunter Gets New $117M Line of Credit, Expansion Continues”
Bradford County | Economic Impact | Electrical Generation | Industrywide Issues | Pennsylvania | Processing Plants

Rural PA County Hopes NatGas Electric Plant Attracts Businesses
March 31, 2014March 31, 2014

Here’s a new twist: Economic development leaders in Bradford County, PA are hoping a local natural gas-fired electrical generating plant now being built will be a magnet that attracts petrochemical businesses to the area. We’ve known for some time (since last year) that Moxie Liberty, which later sold the rights to Panda Liberty, would build a new electrical generating plant near Wyalusing (Bradford County), PA (see Moxie Liberty Sells PA Electric Plant Project to Panda Power). The Panda Liberty plant is now under construction with large cranes and more than 100 workers in and around the site.

Local economic development leaders are hoping the Panda Liberty plant, which will use locally mined Marcellus gas, will catch the attention of petrochemical manufacturers of waxes, lubricants and other products that use natural gas as an ingredient. Already inquiries from such “downstream” businesses have been coming in–a very good sign indeed…
Read More “Rural PA County Hopes NatGas Electric Plant Attracts Businesses”
Broome County | CNG/LNG | Industrywide Issues | New York | NG Vehicles

CNG Truck Fleets Now Mainstream? NY Company Buys 15 CNG Trucks
March 31, 2014March 31, 2014

Is this a sign of things to come? The “received wisdom” has been that compressed natural gas (CNG) used to power cars and trucks is more hope and wishful thinking than it is reality. But maybe, just maybe, the tide as now turned and CNG is more reality than it is hope. Case in point: Trillium CNG, a subsidiary of Integrys Energy Group Inc., announced last September that it will build a new CNG fueling station next door to Willow Run Foods in Kirkwood, NY. Yes, Kirkwood, NY is in MDN’s own backyard! Willow Run Foods is a large packaged foods company that delivers food to fast food restaurants in 14 East Coast-area states.

With trucks running to 14 different states, some of which run on CNG, you have to ask–how will they get home? They’ll have to fill up somewhere. Which means there are enough CNG fueling depots scattered around, at least for some of their regular runs, that CNG will work. Oh, and diesel fuel right now (in the Binghamton area) is $4.37 per gallon. The equivalent CNG is $2.60–so you can see why Willow Run has invested in 15 CNG rigs.
Read More “CNG Truck Fleets Now Mainstream? NY Company Buys 15 CNG Trucks”
Industrywide Issues | Research

How Thick is the Marcellus? USGS Report Sheds (a Little) Light
March 31, 2014March 31, 2014

Normally the U.S. Geological Service (USGS) will push out a press release when they release a new study. However, for a recently published report titled “Characterization of the Marcellus Shale based on computer-assisted correlation of wireline logs in Virginia and West Virginia” (full copy embedded below) there was no such press announcement. We noticed the report when it popped up in one of our news gather filters. As you might expect, this new report is heaving on wonky science. It’s weakness (depending on your viewpoint) is that the data they’ve analyzed comes from just 9 wells in Virginia and West Virginia. The purpose of the report is to test some theories on why the Marcellus is thicker in some places than in others.

This report will be of interest to geologists and E&P companies. For the average person? Probably not so much. However, there is a map on page 8 we like and think you will too. That map shows the Marcellus region with the authors’ best guess as to the thickness of the Marcellus layer in various areas throughout the northeast. Remember, usually the thicker the better (the more natgas there is likely to be locked away in the shale)…
Read More “How Thick is the Marcellus? USGS Report Sheds (a Little) Light”