Marcellus Drilling News

Pennsylvania | Statewide PA

PA Gov. Corbett’s Bold Plan for More Drilling in State Forests
February 5, 2014February 5, 2014

PA Gov. Tom Corbett released his draft budget yesterday and his plan calls for ending the now three-year moratorium on drilling in state forests–which will bring in $75 million for Harrisburg politicians to play with. Predictably, the Democrats are squealing like stuck pigs about the proposed lifting of the moratorium. John Hanger, former Secretary of the Dept. of Environmental Protection under “Fast Eddie” Ed Rendell has already gone on record opposing drilling in state forests (see PA Democrat Gov Candidates Support Partial/Full Moratorium). Apparently John thinks there’s more money to be made by turning PA into a pot smoking state (see John Hanger pushes Democratic gubernatorial rivals to address progressive agenda). New campaign slogan: Pass a Joint for John!

Here’s the “funny” part: Rendell and Hanger leased state forests in 2009 & 2010 and hauled in $444 million for the state–then they clamped down and stopped it before leaving office. Apparently moratoriums on drilling in state forests are good for thee but not for me when it comes to PA Dems like Hanger. Here’s more on Corbett’s bold plan to re-open some state forests for drilling:
Read More “PA Gov. Corbett’s Bold Plan for More Drilling in State Forests”
Maryland | Statewide MD

MD Marcellus Commission Survey: With Careful Planning Drilling OK
February 5, 2014February 5, 2014

In June 2011, Maryland Gov. Martin O’Malley signed an Executive Order creating the Marcellus Shale Safe Drilling Initiative, his way of appearing to address the issue of shale drilling in the state without really addressing it. Since that time the state has been more or less mired in “discussions” about whether, and how, to proceed with Marcellus Shale drilling. There’s only two counties in far western MD that even have recoverable Marcellus Shale gas, but Maryland is so far left on the political spectrum, lawmakers address each other as “comrade” in the hallways in Annapolis. It’s no surprise they’re not anywhere close to allowing drilling.

As part of the Executive Order the Initiative established an Advisory Commission, made up of a number of good people and a few rotten anti-drilling apples. Mostly good, deliberative, smart people sit on the Commission. One of the documents commissioners helped create last summer was a draft “best practices in shale drilling” report (for a copy, see: Maryland Releases Draft “Best Practices” in Shale Drilling Report). Of the 15 people on the Commission, 10 of them filled out a survey last fall about the draft best practices document in an effort to pinpoint areas of disagreement so the commissioners could discuss those issues at scheduled meetings. The survey responses from the 10 Commissioners (full copy of the survey embedded below) show a deliberative, careful, considered approach to shale drilling in the state–which we applaud. Too bad no one in Annapolis is paying attention…
Read More “MD Marcellus Commission Survey: With Careful Planning Drilling OK”
Chesapeake Energy | Energy Companies

Big News! Chesapeakes Hires One New Employee – a Lawyer
February 5, 2014February 5, 2014

Stop Press! This is really big news… After laying off some 1,200 people last year (see The Great Chesapeake Massacre: Lawler Fires 800 People in One Day), Chesapeake Energy’s CEO Doug Lawler has hired one new employee–a lawyer. And not just any lawyer, but the former Secretary of the Environment for the state of Oklahoma. In unrelated news, the handful of people who still work at Chesapeake have once again voted their company onto the Fortune 100 Best Companies to Work For list–for a seventh straight year. Right. We wonder whose hands were greased for that one? Anyone notice big full page ads for Chessy now appearing in Fortune?

Below are a pair of recent press releases from Chesapeake, announcing the appointment of Miles Tolbert to lead the environmental health and safety group at Chessy’s HQ in Oklahoma City (rumor is he has an entire empty floor of offices to himself), and the announcement about the faux Fortune 100 list…
Read More “Big News! Chesapeakes Hires One New Employee – a Lawyer”
Energy Services | Industrywide Issues | Ohio | Pipelines | Regulation | Spectra Energy | Statewide OH

Spectra Energy Files Formal Request with FERC for OPEN Pipeline
February 5, 2014February 5, 2014

When it comes to building a new natural gas pipeline, it’s a loooooong process to get the route planned and approved. Once that’s done, depending on how long the pipeline is, it takes a fair bit of time to actually build it. We started telling you about a proposed new pipeline project from Spectra Energy back in December of 2011 called the Ohio Pipeline Energy Network, or OPEN (see Chesapeake Investing in New 70-Mile Ohio Pipeline). We brought you an update on this interesting project last August (see Spectra’s OH Pipeline Project Advances, Sept 20 Deadline w/FERC).

OPEN is an interesting project because it will build 76 miles of new pipeline that connects to the Texas Eastern Pipeline, and then reverses the flow on the Texas Eastern to carry Marcellus and Utica Shale gas from eastern Ohio to the Gulf Coast. The Texas Eastern will become a bi-directional pipeline, sometimes bringing gas north from the Gulf, other times sending it to the south to the Gulf. The new news about the OPEN project is this: Spectra Energy made their full, official filing with FERC (Federal Energy Regulatory Commission) last week seeking FERC’s blessing to go ahead build it starting the new pipeline in December of this year. Here’s the story as reported by Reuters:
Read More “Spectra Energy Files Formal Request with FERC for OPEN Pipeline”
Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Statewide PA | UGI Energy Services

UGI/AmeriGas Talks up the Marcellus & NEPA Auburn II Pipeline
February 5, 2014February 5, 2014

AmeriGas Partners is the nation’s largest propane company, serving 2 million+ residential, commercial, industrial, agricultural and motor fuel propane customers from 1200 locations in all 50 states. Chances are in a city of any size, there’s an AmeriGas storefront someplace around town. AmeriGas is also a subsidiary of PA-based utility company UGI. AmeriGas/UGI held a conference call yesterday to discuss the company’s first quarter financial performance (their quarters are slightly different from calendar year quarters).

There were a number of references to the Marcellus made by John Walsh during the call. Walsh is the vice chairman of AmeriGas and president of UGI. Most of those Walsh’s references revolved around UGI’s Auburn Pipeline gathering system that finally went live last year (see UGI Wins! Auburn Pipeline with Marcellus Gas in NEPA Goes Live). We’ve selected out relevant portions of Walsh’s remarks from yesterday mentioning the Marcellus Shale and it’s importance to UGI’s future:
Read More “UGI/AmeriGas Talks up the Marcellus & NEPA Auburn II Pipeline”
Atlas Energy | Chevron | Energy Companies | Pennsylvania | Statewide PA

The Unconventional Rise & Sale of Atlas Energy
February 5, 2014February 5, 2014

Atlas Energy, aka Atlas Resource Partners and Atlas Pipeline Partners, is a Pittsburgh-based exploration and production (E&P) and midstream company with active drilling operations not only in the Marcellus/Utica region but another four resource plays as well. The company has an unconventional history, to say the least. The entrepreneurial Cohen family from Philadelphia bought a major stake in the company in the late 1990s and installed son Jonathan in Pittsburgh to help run it. The Cohens had no special knowledge or foresight but seemed to be in the right place at the right time (the Marcellus Shale), because in 2010 the Cohens sold Atlas Energy to Chevron for a pile of cash (see India’s RIL Loses Bidding War for Atlas Energy – $4.3 Billion Deal with Chevron Goes Forward).

An interesting story about the entrepreneurial Cohen family, the businesses they’ve founded or grown, and the rise of Atlas Energy as a major driller in the Marcellus…
Read More “The Unconventional Rise & Sale of Atlas Energy”
Best of the Rest

Marcellus & Utica Shale Story Links: Wed, Feb 5, 2014
February 5, 2014February 5, 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, Feb 5, 2014”
American Energy Partners | Energy Companies | Hess | Ohio | Statewide OH | Utica Shale | XTO

McClendon Confirms 3 New Utica Shale Deals: Hess, XTO, Paloma
February 4, 2014February 4, 2014

Aubrey McClendon’s American Energy continues its rapid expansion. Aubrey is raising money like crazy–and spending it like crazy too. Last week Aubrey landed another half billion dollars to spend in the Utica (see McClendon’s New Company Gets Another Half Billion $ for Utica). Then he spent it! The rumor was the mystery buyer of Hess’ 74,000 Utica Shale acres they sold for $924 million last week was McClendon (see Hess Sells 74,000 OH Utica Shale Dry Gas Acres to Mystery Buyer). It’s no longer a mystery–American Energy verified it is the buyer of the Hess acreage.

But hey, that was last week. It’s a new week, so it’s time for a new deal for Aubrey and American Energy. And right on cue, we have one: XTO Energy has announced they’ve done a deal whereby American Energy will fund 100 percent of XTO’s near-term drilling costs in a “core area” of 55,000 Utica Shale acres. In return, American Energy will get ownership of 30,000 net acres of XTO’s holdings in three Ohio counties. Yesterday Aubrey said he’s cut three deals recently–Hess, XTO and Paloma Partners. Between the three deals, Aubrey says he’s picked up another 130,000 acres in the Utica in the past week. The man is on a tear…
Read More “McClendon Confirms 3 New Utica Shale Deals: Hess, XTO, Paloma”
Energy Services | GreenHunter Resources

GreenHunter’s Management Shakeup, Sells S TX Injection Well
February 4, 2014February 4, 2014

GreenHunter Water, a division of GreenHunter Resources and based in Texas, has its eyes on the northeast. GreenHunter is building up a series of frack wastewater recycling and shipping facilities throughout the Marcellus and Utica Shale region. Perhaps the most prominent GreenHunter facility in the northeast, because it’s been in the news recently, is the one they’re building in Wheeling, WV (see GreenHunter’s Wheeling Frack Wastewater Facility Hits a Snag for the latest).

We have a pair of recent announcements from GreenHunter to share. The first announcement is that GreenHunter has just sold a South Texas wastewater injection well for $3.9 million, which may not seem like MDN news, but it is because GreenHunter sold it expressly to continue the company’s laser focus on the Marcellus/Utica region. The second announcement is about a shakeup at the top. As of a few weeks ago, Jonathan Hoopes, who had been on the Board of Directors and was the interim CEO, President and COO, is now gone. GreenHunter’s Chairman of the Board, Gary Evans, has taken the reigns as interim CEO. A number of other people have changed chairs in upper management and there’s been a few new hires as well. Details below…
Read More “GreenHunter’s Management Shakeup, Sells S TX Injection Well”
Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

Pass Me a Joint – Pot Smoking Coming to NY, But Not Fracking
February 4, 2014February 4, 2014

New York State Health Commission Nirav Shah apparently has no problem rushing his “research” and decision that New York State is ready for pot smoking–but dang, there’s just no telling how long it will take to figure out if fracking is OK for New York. That’s what he told New York lawmakers yesterday during budget hearing testimony.

Whip out a joint–for “medical purposes” (wink wink nod nod)–and that’s hunky-dory with Shah. Lower everyone’s energy costs, create thousands of new jobs, take some of that nasty carbon out of the environment, and stick some coin in farmers’ pockets? Nah–a bridge too far for Nirav Shah (i.e. Andrew Cuomo). We wonder what they’ve been smoking…
Read More “Pass Me a Joint – Pot Smoking Coming to NY, But Not Fracking”
CNX Resources | CONSOL Energy | Energy Companies

CONSOL Reports Record Gas Production in 4Q13, Bumps Up Guidance
February 4, 2014February 4, 2014

On Friday CONSOL Energy (and its CNX Gas division) issued an update on activity for the fourth quarter of 2013. The company reported net income of $738 million, but the majority of that ($591 million) came from “discontinued operations”–which means from the five WV coal mines they recently sold (see CONSOL Sells More Coal Mines, Investing $24B(!) in Shale Drilling). The gas division had a record 4Q13, producing 48.5 billion cubic feet of natural gas equivalent (Bcfe). Although it’s a 4Q13 update, CONSOL also hauls out the crystal ball and says that for 2014 the company estimates it will produce 215 – 235 Bcfe of natural gas. In addition, they’ve stuck their necks way out and say that for 2015 and 2016 those numbers will go up an average 30% each year.

And so, like a broken record, we once again repeat that CONSOL continues its transformation from coal energy producer to natural gas energy producer. Here’s the update from Friday:
Read More “CONSOL Reports Record Gas Production in 4Q13, Bumps Up Guidance”
Crosstex Energy | Devon Energy | Energy Companies | Energy Services | EnLink Midstream | Industrywide Issues | M&A | Pipelines | Processing Plants

A Peek Behind the Curtain of Crosstex/Devon Midstream Marriage
February 4, 2014February 4, 2014

For a number of months, MDN has told you the story/news of the merger between Crosstex Energy (a Dallas, TX company) and Devon Energy (Oklahoma City, OK company). It’s an important story because both have a major presence in the Marcellus/Utica region. Essentially Devon Energy, a driller with a major midstream division, bought out Crosstex, a midstream company, and merged the two operations leaving Crosstex in command of the newly created midstream entity. The newly formed subsidiary company was recently named EnLink Midstream (see Crosstex Energy Gets a Name Change, Merger with Devon Proceeds).

An article in the Dallas Morning News about the merger caught our eye because it profiles the people involved and how the merger happened. We’re not sure that the story reveals any new, salient news about the deal–but it does reveal the depth of experience and character of the people involved. And it inspires confidence that this particular merger, a merger in which no one lost their job, portends very good things for the northeast where EnLink will continue to grow and expand. We’d call it a “here’s why you should feel good about this merger and doing business with these guys” kind of story…
Read More “A Peek Behind the Curtain of Crosstex/Devon Midstream Marriage”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Landfills | Regulation | Wastewater

CT DEEP Wants Frack Waste Reclassified Hazardous to Keep It Away
February 4, 2014February 4, 2014

The Connecticut Department of Energy and Environmental Protection (DEEP) is concerned that fracking waste–both wastewater and drill cuttings–may end up coming to the state. So DEEP has asked CT legislators to consider a bill that will reclassify fracking waste as hazardous waste–even though the federal government itself doesn’t consider fracking waste “hazardous.” Apparently the DEEPers are afraid that those wily shale drillers will sneak across the border and contaminate the pristine wilds of CT, so they want to put severe restrictions on frack waste hauling with the aim of just keeping it away.

Here’s the DEEPer story:
Read More “CT DEEP Wants Frack Waste Reclassified Hazardous to Keep It Away”
Anti-Drilling/Fossil Fuel | Chautauqua County | Hydraulic Fracturing | Industrywide Issues | New York | Regulation

League of Liberal Democrat Women Voters Targets Fracking in WNY
February 4, 2014February 4, 2014

Recently the Portland Town Board in western NY held a special meeting to learn more about fracking. So who did they have present? Who did they find to present the facts on both sides of this contentious issue? That’s right, the League of [Liberal Democrat] Women Voters. You know–that “non-partisan” organization? (Excuse us as we now pick ourselves up off the floor from laughing so hard.)

The LO[LD]WV is, of course, extremely partisan, extremely liberal and extremely anti-drilling–so it’s no wonder the town board members in Portland (located near Buffalo), got an honest-to-goodness real western NY snow job…
Read More “League of Liberal Democrat Women Voters Targets Fracking in WNY”
Education | Industrywide Issues | Jobs | Mahoning County | Ohio | Statewide OH | Utica Shale

Welders Needed in Utica/Marcellus – Training Options in Mahoning
February 4, 2014February 4, 2014

Of all the jobs in the Marcellus and Utica Shale that need qualified, skilled people in them, perhaps none is more needed (right now) than welding. According to Marty Loney, training director for Local 396 in Mahoning County, OH, there’s a shortage right now of between 2,000-3,000 welders for the Utica and Marcellus in the Mahoning Valley area. Local 396 has developed an innovative apprenticeship program to address the need (although it takes five years to complete). Other organizations, like the Trumbull Career and Technical Center also train welders and other hands-on types of jobs for the drilling industry.

Here’s a good review of a couple of training options for those interested in getting a hands-on job in the Marcellus/Utica in the tri-state area when it comes to welding and other physical jobs:
Read More “Welders Needed in Utica/Marcellus – Training Options in Mahoning”
Best of the Rest

Marcellus & Utica Shale Story Links: Tue, Feb 4, 2014
February 4, 2014February 4, 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, Feb 4, 2014”