Marcellus Drilling News

Electrical Generation | Industrywide Issues | Lycoming County | Pennsylvania

Panda Power Buys Rights for 2nd Marcellus-Fueled Electric Plant
December 23, 2013December 23, 2013

In August, MDN told you that Panda Power Funds, a private equity firm located in Dallas, TX had purchased the right from Moxie Energy to build the first new electric generating plant that will run exclusively on Marcellus Shale gas, to be built in Bradford County, PA (see Moxie Liberty Sells PA Electric Plant Project to Panda Power). Construction started on the “Panda Liberty” project in August of this year and it expected to take about 30 months to complete.

Panda announced last Friday they have purchased a second set of permits from Moxie Energy for a second electric generating plant that will run on Marcellus Shale gas–this one in Lycoming County, PA (southwest of Bradford County, but close by to the first project). This new, second project will be called Panda Patriot, adopting the Patriot name Moxie was using for the project. Here are the particulars from Panda:
Read More “Panda Power Buys Rights for 2nd Marcellus-Fueled Electric Plant”
Energy Services | Industrywide Issues | Pipelines | Transco | Williams

Transco Pipeline Shatters NatGas Delivery Record in Eastern US
December 23, 2013December 23, 2013

Midstream company Williams owns the largest natural gas delivery pipeline in the country–the mighty Transco which is 10,200 miles long counting all of its offshoots. The Transco pipeline has a typical daily maximum capacity of 10.15 million dekatherms. On Dec. 12 Williams reports the Transco broke its own record by delivering 10.83 million dekatherms of natural gas during the recent cold snap.

Riding in on a white horse just in time to help out was (ta da ta da)–the Marcellus Shale. Williams brought its Northeast Supply Link project (in the Marcellus) online early, ahead of schedule, which contributed an additional 250,000 dekatherms for Transco to use in meeting the increased demand…
Read More “Transco Pipeline Shatters NatGas Delivery Record in Eastern US”
Energy Services | Industrywide Issues | Kinder Morgan | Processing Plants

Kinder Morgan Continues Marcellus/Utica Ramp-up…in Texas!
December 23, 2013December 23, 2013

Kinder Morgan, the country’s largest midstream (pipeline) company, seems to have “all of a sudden” woken up to the opportunities in the Utica and Marcellus Shale. Last week alone they announced a $150 million upgrade to their Tennessee Gas Pipeline (TGP) from “north to south” to cart away more Utica/Marcellus gas, a $74 million expansion of the TGP westward and on up to Canada (the Niagara expansion), and a new natural gas liquids (NGL) pipeline from the Utica to Sarnia, Canada called UTOPIA (see MDN’s Kinder Morgan category for the rapidly growing list of KM stories).

It seems KM was not done! On Friday, the company issued yet another press release, this one announcing the expansion of fractionation plants in Texas. Why? To handle NGLs that will be pipelined from the Utica and Marcellus to the Gulf Coast. Seems you can’t get away from the Utica/Marcellus–even in Texas! Here’s the details from KM…
Read More “Kinder Morgan Continues Marcellus/Utica Ramp-up…in Texas!”
Belmont County | Energy Companies | Hess | Ohio | Utica Shale

Hess Has Gall to Drill Utica Well Next Door to a Cemetery in OH
December 23, 2013December 24, 2013

We just have to bring you a story so…important…we’re…outta…breath…to…tell…you. The evil drillers at Hess–drilling in Belmont County, OH (one of the best places to drill on the planet)–have the gall, the temerity, the reckless disregard to drill a Utica Shale well right next to a cemetery! I mean, don’t they know they may disturb the dead? Don’t they know that for a full 30 days or so their drilling will ruin the view from some of those graves in that cemetery. The nerve!

Never mind the same area where Hess is drilling was mined for coal in the 1970s and 80s, a much more destructive process with years of eyesores. Hey, that was then and this is now. And don’t tell anyone (double-swear promise?)–but the cemetery has leased their 2.2 acres to Hess too–so the Hess well is going to go underneath the cemetery. Yes it’s nearly two miles down, but you know, (*whispering*) ghosts live down there. Here’s arguably one of the most important stories we’ll bring you (in the next 5 seconds)…
Read More “Hess Has Gall to Drill Utica Well Next Door to a Cemetery in OH”
Best of the Rest

Marcellus & Utica Shale Story Links: Mon, Dec 23, 2013
December 23, 2013December 23, 2013

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: Mon, Dec 23, 2013”
Hydraulic Fracturing | Industrywide Issues | Litigation | Pennsylvania | Regulation | Statewide PA

PA Supreme Court Rules Against State/Drillers in Act 13 Case
December 20, 2013December 20, 2013

No doubt most MDN readers have already heard the earth-shattering news from yesterday that Pennsylvania’s Supreme Court has sided with the seven towns who sued the state to retain their right to regulate (zone) where drilling and related activities can and cannot happen in their communities. MDN has long covered this story and worried that a split decision after one of the justices resigned would lead to an unresolved situation. As fate would have it, one of the Republicans on the bench, Chief Justice Ron Castille, sold out and turned against the industry, so it ended up being a 4-2 decision with (predictably) all three Democrats voting against the industry plus RINO Castille.

What was the decision? For different reasons (they couldn’t agree among themselves), the justices said localities should be able to write their own rules for where drilling can and can’t go. Which is certainly not a bad thing (the right to determine), except in some communities local town boards are packed with anti-drillers that make life a living hell for anyone or anything related to drilling. Ultimately innocent landowners and taxpayers are the ones who lose out because drillers will walk away from areas where unreasonable people pack town boards (no drilling, no leases, no jobs, no tax revenue). That’s exactly what will now start to happen in PA.

Anti-drilling groups like The Sierra Club, Delaware Riverkeeper and PennEnvironment were positively orgasmic in their reaction. They now get to kill drilling in at least some locations in PA. The Marcellus Shale Coalition said it’s a truly a sad day for PA. We agree. Below we bring you what we consider the “best of” coverage of the opinion. We have not had time to thoroughly research it ourselves, so we’ll rely on others to analyze it. We’ve also embedded the full 162-page decision filed by the Supreme Court so you can read it for yourself…
Read More “PA Supreme Court Rules Against State/Drillers in Act 13 Case”
Coterra Energy (Cabot O&G) | Energy Companies | Exporting | Industrywide Issues | Pennsylvania | Pipelines | Susquehanna County

Cabot Signs Deal to Export Gas via Cove Point, MD
December 20, 2013December 20, 2013

The good news continues to roll out of Cabot Oil & Gas. In a corporate updated issued yesterday, the company said they’ve signed a deal with Pacific Summit Energy (a subsidiary of Japanese company Sumitomo) to export up to 350,000 million Btus of natural gas per day via Dominion’s planned Cove Point, MD LNG export facility. The Cove Point facility is currently supposed to be in operation in 2017. The deal runs for 20 years. Previously, MDN told you that Japan and India have already spoken for 100% of LNG exports from Cove Point (see Dominion’s Cove Point LNG Facility Achieves Important Milestones).

In what seems to be unrelated but actually is related, Cabot also said they’ve achieved another milestone–they now produce 1.5 billion cubic feet of natural gas per day out of their wells in Susquehanna County, PA. That’s just one year after hitting 1 Bcf/d! So in one year production has skyrocketed another 50%. Truly astonishing. How much of today’s current production is Cabot committing to send overseas?…
Read More “Cabot Signs Deal to Export Gas via Cove Point, MD”
Accidents | Chesapeake Energy | Energy Companies | Industrywide Issues | Regulation | Statewide WV | West Virginia

EPA Makes Chesapeake Pay $9.7M for Spilling Dirt in Creeks & Swamps
December 20, 2013December 20, 2013

The federal Environmental Protection Agency (EPA) announced yesterday that they’ve slapped Chesapeake Energy with a $3.2 million fine, and a requirement that Chessy spend another $6.5 million to clean up 27 sites in West Virginia that the EPA says were “damaged by unauthorized discharges of fill material into streams and wetlands.” That is, Chessy got sloppy and dumped some dirt in a few creeks and swamps (the horror!). The EPA used the federal Clean Water Act to extract their multiple pounds of flesh out of Chesapeake. The EPA is all proud of themselves that this is “one of the largest” fines ever levied by the EPA using the CWA.

Here’s the announcement direct from the belly of the rogue beast itself:
Read More “EPA Makes Chesapeake Pay $9.7M for Spilling Dirt in Creeks & Swamps”
Energy Services | Harrison County | Industrywide Issues | MarkWest Energy | Ohio | Processing Plants | Statewide OH | Utica Shale

OH Utica Condensate Processing on the Way from MarkWest/EMG
December 20, 2013December 20, 2013

MarkWest Energy Partners and the Energy & Minerals Group (EMG) announced yesterday they have formed a joint venture to build a network of condensate processing facilities in eastern Ohio. The new venture will be called Ohio Condensate Company, LLC and it already has its first customer–Gulfport Energy. According to the announcement the jv is working on signing up more customers. The first project for the jv will be a new condensate stabilization facility with “associated logistics and storage terminal capabilities” to be constructed in Harrison County, OH. That facility is due to be in service by 3Q14.

The details as revealed by MarkWest & EMG yesterday:
Read More “OH Utica Condensate Processing on the Way from MarkWest/EMG”
Energy Companies | Hydraulic Fracturing | Industrywide Issues | Litigation | Pennsylvania | Statewide PA | Susquehanna County | WPX Energy

John Hanger Uses Franklin Forks Water Issue to Boost Gov Campaign
December 20, 2013December 20, 2013

Using the case of three families in Franklin Forks, PA who are suing WPX Energy for contaminating their water wells as a political issue, John Hanger, former Secretary of the PA Dept. of Environmental Protection (DEP), says the investigation done by the DEP wasn’t independent enough for his liking and the agency should re-do it. The three families claim WPX caused methane to migrate into their water wells. The reason the story has been in the news is because WPX had tried (and finally gave up) to remove fresh water tanks from the residents after the DEP determined WPX’s drilling was not at fault (see WPX Decides to Let Franklin Forks Families Keep Water Tanks).

Hanger’s protestations give his failing campaign to get the Democrat nomination for governor some badly needed media attention since his candidacy is rapidly sinking. He’s looking for any wedge issue he can find. The WPX story, visible as it is right now, is tailor made. Here’s John’s trumped up reasons for why the investigation should be redone…
Read More “John Hanger Uses Franklin Forks Water Issue to Boost Gov Campaign”
Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Energy Services | Eureka Midstream | Ohio | Statewide OH | Statewide WV | Triad Hunter | West Virginia

Magnum Hunter Production #s for Recent Wells Drilled in OH & WV
December 20, 2013December 20, 2013

This morning Magnum Hunter issued an operational update for wells recently drilled in both the Marcellus and Utica Shale–in Ohio and West Virginia. In addition to production stats for the new wells (see below), MH reports they continue to snap up acreage in both the Marcellus and Utica. They now own 89,000 acres in the Marcellus and 105,000 acres in the Utica. Some of that acreage overlaps and they plan to drill both Marcellus and Utica wells on the same pad in some cases.

Here’s the update, including well results from wells drilled in Monroe and Washington counties in OH, and Tyler County in WV:
Read More “Magnum Hunter Production #s for Recent Wells Drilled in OH & WV”
Energy Companies | WPX Energy

Apco O&G, WPX Energy’s Alter Ego, Ejects Hill as CEO Too
December 20, 2013December 20, 2013

MDN told you yesterday our theory of why WPX Energy CEO Ralph Hill was booted–due to investor meddling from the company’s second largest investor Taconic Capital Advisors (see CEO Shake-up Explained: Taconic Capital Jerking WPX’s Chain). Something we didn’t know was that Ralph Hill was also CEO of another company–Apco Oil & Gas International. Apco is the international arm of WPX (drilling in non-U.S. countries). The two companies share most of the same management and the same board of directors.

Yesterday Apco issued a press release saying Hill was booted from their company too…
Read More “Apco O&G, WPX Energy’s Alter Ego, Ejects Hill as CEO Too”
Industrywide Issues | Pipelines | Regulation

Is Federal Regulation of Local Gathering Pipelines on the Way?
December 20, 2013December 20, 2013

The permitting and regulating of pipelines in this country–in particular natural gas pipelines–is complex. Depending on the type of pipeline, different federal and state (and even local) government agencies a) permit it, and then perhaps confusingly, b) a different agency ensures it meets safe operating standards. That is, the people who permit it usually don’t inspect it. The biggest gap in the regulation picture is that of local gathering pipelines running from the wellhead to a larger regional pipeline or compressor plant. Ohio recognized this problem and recently put the Public Utilities Commission of Ohio (PUCO) in charge of inspecting gathering lines (see PUCO Now Regulates Gathering Pipelines in Ohio and Cheat Sheet: Which Agencies Regulate OH Drilling/Pipelines).

Ohio has addressed the “lack of oversight of gathering lines” issue. However, Pennsylvania has not. Gathering lines in the Keystone state are still not regulated or inspected by any government agency, and that gives some people pause–and it gives some a reason to involve the federal government. A DC-based reporter writing for the Chicago-based In These Times publication has written a good article addressing the pipeline issue in general, and PA’s gathering lines in particular. He indicates the federal Pipeline and Hazardous Materials Safety Agency (PHMSA) is sniffing around the regulation of gathering lines, which is worrisome to those of us who believe it’s better regulated at the state level…
Read More “Is Federal Regulation of Local Gathering Pipelines on the Way?”
Best of the Rest

Marcellus & Utica Shale Story Links: Fri, Dec 20, 2013
December 20, 2013December 20, 2013

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: Fri, Dec 20, 2013”
Energy Companies | WPX Energy

CEO Shake-up Explained: Taconic Capital Jerking WPX’s Chain
December 19, 2013December 19, 2013

A bit more insight into the sudden departure of WPX Energy CEO Ralph Hill that MDN told you about on Tuesday (see WPX Energy CEO Ralph Hill is Out, Interim CEO James Bender is In). WPX’s former parent, Williams, is being jerked around by corporate raiders who have become its largest investor (see Bad News: Corporate Raiders Take Aim at Williams). In what seems like very strange timing (coordinated attack?) WPX is also being jerked around–in this case by its second largest investor, Taconic Capital Advisors. It was Taconic that apparently wanted Hill gone and one of their own installed on the board. So WPX announced yesterday they’ve reached an “agreement” with Taconic to expand the board by one member, adding Michael Schwartz, a principal and portfolio manager at Taconic, to the WPX board.

It’s all rather ominous if you ask us. Never a good thing to have so-called investors who don’t give a fig about the company jerking management around this way and that with everybody running for cover and nothing constructive getting done. Here’s the statement issued yesterday by WPX about their “agreement” (at the end of a investment gun barrel) with Taconic:
Read More “CEO Shake-up Explained: Taconic Capital Jerking WPX’s Chain”
Energy Companies | EQT Corp

EQT to Spend $1.1B on Marcellus Drilling in 2014, $145M on Utica
December 19, 2013December 19, 2013

EQT, one of the largest drillers in the Marcellus Shale, released their 2014 “guidance” (what we’ll do next year) update yesterday. And boy oh boy is it a duesy for the Marcellus. EQT says they’ll spend an eye-popping $1.1 billion and drill 186 Marcellus Shale wells in 2014. In the Utica Shale, EQT plans to spend $145 million and drill 21 wells. EQT will actually spend more money to drill in the Upper Devonian Shale layer than the Utica: $155 million to drill 30 wells in the UD.

EQT will spend the vast majority of it’s planned $1.9 billion in capital expenditures in the northeast in 2014. Here’s the update with full details:
Read More “EQT to Spend $1.1B on Marcellus Drilling in 2014, $145M on Utica”