Marcellus Drilling News

Crime | Industrywide Issues | Litigation | Mahoning County | Ohio | Wastewater

Youngstown Wastewater Dumping Case Nears End, Lupo to Plead Guilty?
March 20, 2014March 20, 2014

Last year the owner of Youngstown area Hardrock Excavating and its sister company D&L Energy, Ben Lupo, allegedly instructed one of his employees who hauled frack wastewater (through the Hardrock company) to dump the wastewater down a drain–at night so no one would notice. And it wasn’t just one or two times (see Youngstown, OH Illegal Wastewater Dumping Happened “At Least” 24X). The employee and Lupo were eventually caught. After both businesses were effectively closed down by the Ohio Dept. of Natural Resources, the assets were eventually auctioned off (see Denver Co Buys OH Wastewater Polluter D&L Energy for $20.7M).

The employee plead guilty and will be sentenced tomorrow. Until now Lupo has maintained innocence. However, the judge in the case has scheduled a “change of plea” hearing for Lupo next Monday in Cleveland. That almost always means the defendant is changing his plea to guilty. To which we say, it’s about time…
Read More “Youngstown Wastewater Dumping Case Nears End, Lupo to Plead Guilty?”
Allegheny County | Energy Companies | Lease & Royalty Payments | Pennsylvania | Range Resources Corp

Allegheny Co Exec Bests Range on Deer Lakes Park Lease Deal
March 20, 2014March 20, 2014

In December MDN told you that Allegheny County, PA was close to a deal with Range Resources to all drilling under (not on) Deer Lakes Park (see Range’s Big Money Deal to Drill Under Deer Lakes Park in SW PA). The deal at that time called for a $3.5 million signing bonus and a royalty of 17%, meaning over time the county stands to gain something like $70 million.

The final deal has been struck between Range and County Executive Rich Fitzgerald. That old Rich, he’s wily and a tough negotiator. The final deal is a $4.7 million signing bonus and 18% royalties. Now it’s up to the Allegheny County Council to approve it. Let’s see–$70 million+ on one hand with no environmental impacts, or please a few loud-mouthed hippies who watched Gasland and don’t want us to drill. Tough decision…
Read More “Allegheny Co Exec Bests Range on Deer Lakes Park Lease Deal”
Pennsylvania | Statewide PA

MSC Launches Shale Advocates – An Army of Shale Volunteers
March 20, 2014March 20, 2014

The Marcellus Shale Coalition (MSC) is the premier organization of its kind for promoting shale drilling in the Marcellus Shale. Headquartered in Pittsburgh, the MSC has some 300 members and associate members–a veritable Who’s Who in Marcellus drilling. All of the big boys (drillers and midstream companies) and many of the smaller ones belong. The MSC has enormous influence with lawmakers and does a great job with publicity for shale drilling. Just one thing missing–and that’s a way to involve people who “advocate” or support shale drilling but don’t necessary work in the industry or belong to the MSC. How to enlist the help of the army of volunteers who would be willing to spread the word to family and friends–and perhaps nudge their local political officials–to support responsible shale drilling?

The MSC has the answer. Yesterday they launched a new initiative and website called Shale Advocates (www.shaleadvocates.com) that encourages shale supporters–no matter where they are and who they are–to help write letters and emails, and even call, political officials. It is a way to focus the efforts of the vast army of volunteers who support shale energy–a force for good. And frankly, a force for reason in an age of unreason. Here’s more on the new Shale Advocates movement and what the MSC aims to do by launching it…
Read More “MSC Launches Shale Advocates – An Army of Shale Volunteers”
Ohio | Statewide OH | Utica Shale

More Predictions from Ohio’s State Geologist on Utica Drilling
March 20, 2014March 20, 2014

Yesterday MDN told you that the Ohio State Geologist, Mike McCormac, made a pretty bold prediction (see OH State Geologist Predicts 19K New Utica Wells in Next 19 Years). McCormac’s predictions and thinking are outlined in a new and as of yet, unreleased report. However, as we pointed out, the Akron Beacon Journal somehow got a copy and shared some of the highlights.

The Beacon Journal has published a second article with even more tidbits from the soon-to-be-released report from McCormac:
Read More “More Predictions from Ohio’s State Geologist on Utica Drilling”
Ohio | Statewide OH

New President Elected for 2 Year Term at OOGA
March 20, 2014March 20, 2014

Ohio Oil and Gas Association (OOGA) has a new president: David R. Hill has been elected to serve as president for a two-year term. Hill is a native Ohioan–a good thing since Gov. John “foreigner hunter” Kasich keeps an eye on these things. Hill is a long-time independent oil and gas producer and geologist based in Byesville, OH.

The announcement from OOGA:
Read More “New President Elected for 2 Year Term at OOGA”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA | Taxation

PA State Treasurer Rob McCord Unveils Gas Death Plan
March 20, 2014March 20, 2014

Poor old “Pass a Joint for John” Hanger dropped out of the race to be the Democrat nominee for governor in PA. Who will be next? Apparently not State Treasurer Rob McCord. Get this, he’s just released an utterly brilliant natural gas plan–tax the whole darned thing 10%…on everything produced. According to McCord, that will raise $1.63 billion for the state in just the first year.

Of course the plan is, in reality, utterly brain dead and moronic. If such a plan were ever to see the light of day it would effectively kill all shale drilling in the state. Done. Finished. Over. And then instead of the $200 million+ PA now extracts in a reasonable impact fee–they would get nothing. How on earth do these people keep getting elected to office? Here’s more of the moronic McCord gas death plan:
Read More “PA State Treasurer Rob McCord Unveils Gas Death Plan”
Pennsylvania | Statewide PA

PA Game Commission Stops Promotion of Moonlighting Staffer
March 20, 2014March 20, 2014

Last week MDN told you about the moonlighting head of oil and gas leasing for the Pennsylvania Game Commission and his impending promotion (see PA Gov Corbett Blocks Promotion of Moonlighter at Game Commission). The independent 8-member board that runs the commission was about to promote William A. Capouillez to the top job of executive director. Capouillez manages the Commission’s 1.4 million acres of land for leasing by day, but in his off hours he assists private landowners with leasing their land to some of the same companies he brokers deals with during his day job. In other words, it has the appearance, if not the realistic possibility, for a conflict of interest.

Gov. Tom Corbett put the breaks on Capouillez’s promotion. He also put the breaks on a deal the Game Commission had cooked up to give it’s outgoing executive director a $220,000 severance package. (Hey, where do we sign up to be members of the PA Game Commission board?) Yesterday the Game Commission said they would not promote Capouillez and they have put a stop payment on the $220K check to outgoing director Carl Roe due to objections from the governor…
Read More “PA Game Commission Stops Promotion of Moonlighting Staffer”
Air Quality | Anti-Drilling/Fossil Fuel | Industrywide Issues | Regulation

Childlike Green Groups Continue Letter Writing Campaign to Feds
March 20, 2014March 20, 2014

A handful of loud-mouthed anti-drillers with printed letterhead, pretending to represent a popular uprising–a veritable horde–sent yet another ninny nanny letter to Obama’s Secretary of Energy Ernest Moniz–because they’re not getting invited to private talks about methane pollution.

Here’s what petulant, ill-raised children grow up to do:
Read More “Childlike Green Groups Continue Letter Writing Campaign to Feds”
Best of the Rest

Marcellus & Utica Shale Story Links: Thu, Mar 20, 2014
March 20, 2014March 20, 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 20, 2014”
Economic Impact | Industrywide Issues | Jobs | Pipelines | Research

New Research: US/Canada Need $30B/Year on Midstream Investment
March 19, 2014March 19, 2014

In September 2013 MDN published Vol. 2 of the 2013 Marcellus and Utica Shale Databook series. In that volume we included a comprehensive list of 111 announced infrastructure (pipeline related) projects for the northeast. When we tallied it all up, the numbers were that projects in our neck of the woods will result in about $40 billion being spent over the next five years or so (see MDN’s 2013 Databook Vol 2 Finds Staggering $40B in NE Midstream Projects). The INGAA Foundation (Interstate Natural Gas Association of America) and ANGA (America’s Natural Gas Alliance) yesterday released a study they commissioned that tops our estimates–by a lot. The study is titled, “North America Midstream Infrastructure through 2035: Capitalizing on Our Energy Abundance” (full copy embedded below). Researched and prepared by ICF International, the new study shows that the U.S. and Canada together will need to spend $30 billion per year from now until 2035 on pipelines and related infrastructure just to keep pace with shale development.

ICF’s numbers add up to $641 billion in 2012 dollars over 22 years. But get this: $70 billion of that $641 will be spent in the Marcellus, according to the study. Nationwide the new spending will generate more than 432,000 jobs, add approximately $885 billion to U.S. and Canadian economies, and bring in over $300 billion in federal, state/provincial and local taxes. Truly staggering numbers. Immediately below we have the quick hit, bulleted conclusions of the report, for the time-pressed, so you can scan it. Below that the press release announcing the new study–and finally, a full copy of the study with some great charts and graphs (be sure to check out their Henry Hub price forecast through 2035 on page 24)…
Read More “New Research: US/Canada Need $30B/Year on Midstream Investment”
Ohio | Statewide OH | Utica Shale

OH State Geologist Predicts 19K New Utica Wells in Next 19 Years
March 19, 2014March 19, 2014

The Ohio State Geologist, Mike McCormac, predicts that 19,000 new Utica Shale wells will be drilled in Ohio in the next 19 years. Which sounds a bit ambitious to us–but then he’s the geologist and expert and we are not. We did, however, check the most recent available ODNR numbers and as of last Friday there have been 770 Utica wells drilled–in the last 3+ years. Hmmm. A thousand wells a year for 19 years?

McCormac has drafted a new report with his predictions. It’s not been released to the public–yet. But apparently a copy was released to the Akron Beacon Journal. Intrepid reporter Bob Downing files this report, with a number of other interesting predictions and observations:
Read More “OH State Geologist Predicts 19K New Utica Wells in Next 19 Years”
Broome County | Chenango County | Coterra Energy (Cabot O&G) | Delaware County | Energy Companies | Energy Services | Industrywide Issues | New York | Otsego County | Pennsylvania | Pipelines | Schoharie County | Susquehanna County | Williams

Leatherstocking to Tap Constitution Pipeline for Local Deliveries
March 19, 2014March 19, 2014

Rural residents (and an aerospace manufacturer) located in New York’s Southern Tier and Central New York areas have a lot to be thankful for with the upcoming Constitution Pipeline–a natural gas pipeline that will deliver natural gas from the Marcellus Shale gas fields of Susquehanna County, PA all the way to two major interstate pipelines near Schoharie, NY (see New Marcellus Constitution Pipeline Announces “Final” Route). Williams is building the 124-mile pipeline with backing from Cabot Oil & Gas, whose gas will flow through it.

However, a regional gas pipeline company (think gas utility) founded just a few years, Leatherstocking Gas, will tap into the Constitution at (so far) four different locations along the pipeline so they can deliver that homegrown Marcellus gas to rural customers who are not being served by the big utilities like New York State Electric & Gas (NYSEG, owned by Iberdrola). Yesterday Williams and Leatherstocking announced the deal to tap into the Constitution Pipeline in four locations…
Read More “Leatherstocking to Tap Constitution Pipeline for Local Deliveries”
Energy Companies | Penn Virginia Corporation

Penn Virginia the Latest Plaything for Billionaire George Soros
March 19, 2014March 19, 2014

Penn Virginia is an interesting company. They are an independent E&P (exploration and production) company incorporated in Virginia in 1882–but their headquarters is in Radnor, PA (near Philly). They drill for oil, NGLs and natural gas mostly in…Texas and Oklahoma! They also have operations and acreage in the Mid-Continent, Mississippi and last (and sorta least)–the Marcellus Shale. According to NGI’s Shale Play Factbook, Penn Virginia has leased 38,000 in the Marcellus. According to the latest MDN Databook, Penn Virginia has received permits for two well sites in the past two years–precisely squat. We don’t think they’ve actually drilled a single well in the Marcellus.

Why are we going on about who Penn Virginia since (so far) they are a bit player in the Marcellus? Because yesterday liberal Democrat billionaire George Soros got his claws into the company. Why did he invest? To instill good LibDem values like lifetime employment, free condoms, etc. in the capitalist heathens at the company? Nope. Soros invested $29.1 million in Penn Virginia, grabbing a 9.1% ownership, so he can force them to sell themselves…
Read More “Penn Virginia the Latest Plaything for Billionaire George Soros”
Industrywide Issues | Landfills | Luzerne County | M&A | Pennsylvania | Supply Chain

Small Marcellus Drill Cuttings Company Gobbled Up by Bigger Fish
March 19, 2014March 19, 2014

A small and rapidly growing company–Susquehanna Services, Inc.–uses a special process to safely process and dispose of drill cuttings (leftover rock and dirt) from shale drilling in the Marcellus, Utica and Green River (WY) shale plays. The company was founded in 2010 (near Scranton, PA) and it’s been nothing but rapid expansion ever since. The founder and president of Susquehanna Services, John Yarosz, has just realized his American Dream. His company was bought out by a bigger fish: Specialty Waste Operating Partners. Yarosz will stay on as president and continue to run the operation day to day–at least for now.

Here’s the press release announcing the deal:
Read More “Small Marcellus Drill Cuttings Company Gobbled Up by Bigger Fish”
Industrywide Issues | Lease & Royalty Payments | Pennsylvania | Regulation | Statewide PA

PA NARO Alert: Tell Your State Rep to Vote YES on HB 1684
March 19, 2014March 19, 2014

The Pennsylvania chapter of the National Association of Royalty Owners (NARO) sent out a flash alert email yesterday asking members to contact their state representatives to encourage a “yes” vote on House Bill (HB) 1684–the Guaranteed Minimum Royalty Act. This bill is partially in response to the apparent gouging Chesapeake Energy has done with respect to royalty payments. A vote may come as early as TODAY.

Here is the text of the email from PA NARO president Jackie Root:
Read More “PA NARO Alert: Tell Your State Rep to Vote YES on HB 1684”
Industrywide Issues | Pipelines | Supply Chain

Marcellus Midstreamers Turn to Calif. Company for Compressor Power
March 19, 2014March 19, 2014

Even companies as far away as California are successfully selling their manufactured products to the Marcellus and Utica Shale industry–albeit the products they manufacture are pretty specialized. Capstone Turbine Corporation of Chatsworth, CA issued a press release yesterday to announce three midstream operators in the Marcellus/Utica have placed orders with the company for power plants that will power multiple compressor stations and pipeline interconnections. Captstone doesn’t name the customers, but we can certainly guess who they may be (although we won’t).

To be honest, this is pretty obscure (i.e. uninteresting) stuff for most. Our point? Big supply chain bucks (millions) have just been spent–and it’s money that could potentially be spent with manufacturers closer to home, if those manufacturers exist, and if they get plugged into the northeast shale supply chain. So pay attention companies that manufacture power plants! Here’s the Capstone press release with a few more details…
Read More “Marcellus Midstreamers Turn to Calif. Company for Compressor Power”