Marcellus Drilling News

Allegheny County | CNX Resources | CONSOL Energy | Energy Companies | Pennsylvania

CONSOL to Use Electric Motors for Drilling at Pittsburgh Airport
December 19, 2013December 19, 2013

This is really cool. CONSOL Energy announced yesterday at their “second and final” public workshop on drilling at the Pittsburgh Airport that they will use electric motors to drill on airport property. This is the first time they’ve tried it. By using electric, CONSOL says it will “significantly reduce emissions and noise during development.”

CONSOL was the winning bidder to drill on (and under) airport property–drilling that will bring the airport as much as a half billion dollars in fees and royalty payments (way more than they’ll ever get from gate fees from airlines). CONSOL is slated to begin drilling in July 2014 with plans to drill a total of 45 Marcellus Shale wells. Here’s the details from yesterday’s meeting:
Read More “CONSOL to Use Electric Motors for Drilling at Pittsburgh Airport”
Anti-Drilling/Fossil Fuel | Broome County | Cortland County | Energy Services | Industrywide Issues | Millennium Pipeline | New York | Onondaga County | Pipelines

Millennium Scraps Cortland-to-Syracuse Pipeline, Binghamton Next?
December 19, 2013December 19, 2013

In May MDN told you about plans by the Millennium Pipeline to expand “south to north,” to haul Marcellus Shale gas from Cortland to Syracuse, NY, launching a non-binding “open season” to gauge interest (see The Irony: Millennium Pipeline Expanding in NY for More Shale Gas). The Cortland-to-Syracuse pipeline was part of a larger plan, to go from Binghamton-to-Syracuse. The Millennium’s plan is/was to build a pipeline from Binghamton to Cortland first, and then from Cortland on to Syracuse. The open season in May was to see if there would be enough interest for the Cortland to Syracuse leg. Apparently, there was not.

An article in the Syracuse Post-Standard yesterday says the Millennium has scrapped their plan to build the Cortland-to-Syracuse pipeline. And, even more surprisingly, the Binghamton-to-Cortland pipeline (where the Millennium would connect to the Dominion Transmission pipeline) is now ominously “under review.” Which sure looks to us like the entire project may be scrapped. Question: Did the ever-present opposition from anti-drilling nutters sink the Millennium project?…
Read More “Millennium Scraps Cortland-to-Syracuse Pipeline, Binghamton Next?”
Electrical Generation | Exporting | Hydraulic Fracturing | Industrywide Issues | Meetings | NG Vehicles | Pipelines | Processing Plants

Energy Industry Leaders Gather at Platts Forum in NYC
December 19, 2013December 19, 2013

One week ago, MDN editor Jim Willis attended the Platts Global Energy Outlook Forum in New York City. The Forum, an annual event that attracts the titans of the worldwide energy industry, was held at the swanky Waldorf Astoria Hotel. Although Jim has been traveling to NYC for years and prides himself on his ability to navigate Manhattan on the subway, every now and again he botches it–like this time. So he ended up walking an extra 6-7 city blocks after getting off at the wrong stop (doh!). But that’s OK. It was a brisk day and the walk did him good.

Rather than get on the ungodly 3:10 am bus from Binghamton to NYC, Jim elected to ride the 6:10 am bus, which was late arriving at the Port Authority due to traffic at the Lincoln Tunnel. So he missed the first session and joined the second session shortly after it had begun. But wow, what a session it was! Below Jim shares his notes from the session “Switching, Ditching and Bridging Fuels,” his notes and impressions from the lunch keynote address by DOE Sec. Ernest Moniz, and his notes from the afternoon session titled, “Midstream Gathers Momentum”. Jim got to hear some of the biggest names in energy. It was all a bit heady for a “small time” natural gas blogger with an attitude…
Read More “Energy Industry Leaders Gather at Platts Forum in NYC”
Hydraulic Fracturing | Industrywide Issues | Ohio | Statewide OH | Taxation | Utica Shale

OH House Republicans Take Up “Kill Utica Drilling” Tax
December 19, 2013December 19, 2013

Here we go. The Ohio House has taken up and is now considering raising the severance tax on Utica Shale drilling much higher than it has been–which threatens to stall drilling in the state. Some RINO Republicans have signed on to the bill, following the lead of flaky Gov. John Kasich (also a Republican, increasingly looking like a RINO himself).

Here’s the latest on the “kill Utica drilling” tax:
Read More “OH House Republicans Take Up “Kill Utica Drilling” Tax”
Energy Services | Ethane | Industrywide Issues | NGLs | NOVA Chemicals | Processing Plants

NOVA Chemicals Plans Expansion of Corunna Cracker in Sarnia
December 19, 2013December 19, 2013

If the ethane produced in the Utica and Marcellus region doesn’t get processed in our region by way of an ethane cracker plant–and it won’t for at least another five years, even if a plant is green lighted today–it has to go somewhere else to be processed. That somewhere else is either the Gulf Coast or Canada, where large cracker plants are located. One of those crackers is operated by NOVA Chemicals in Sarnia, Ontario, Canada. Yesterday NOVA issued a press release that talks about their plans to expand the Corunna cracker to handle an additional 20% capacity coming from the Utica/Marcellus, which is good news for producers in the northeast.

NOVA is also planning to expand the manufacturing facilities that accept the output of the Corunna cracker, including a plant that manufactures polyethylene. Here’s the NOVA announcement from yesterday about what’s coming in the next few years in Sarnia…
Read More “NOVA Chemicals Plans Expansion of Corunna Cracker in Sarnia”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Litigation | New York | Statewide NY

NYC Comptroller-Elect Scott Stringer: Anti-Fracking “Bully”
December 19, 2013December 19, 2013

New York City’s anti-drilling comptroller-elect, Scott Stringer, will take office in January. Even before he ascends to his throne, Stringer is filing a friend of the court (or “amicus”) brief on behalf of the Town of Dryden. Dryden, you may recall, illegally voted to ban fracking and has been challenged all the way to the state’s top court. In filing the amicus brief, Stringer said he wants to use the law as a “bully pulpit”. More like he just wants to bully other people by (ab)using the law.

The really troubling aspect of Stringer’s character is his blatant disregard and mafia-like attitude that he’ll do what he wants to do and no one will stop him. Case in point: Stringer has not “ruled out” (meaning he’s planning to use) the $140 billion pension fund he’ll control when he assumes office to bully corporate boards over issues like fracking. Really nice guy that Scott Stringer…
Read More “NYC Comptroller-Elect Scott Stringer: Anti-Fracking “Bully””
Energy Companies | Halcon Resources | Industrywide Issues | Ohio | Pipelines | Trumbull County

Niles, OH Does Complete Turnaround, Leases Land for Pipeline
December 19, 2013December 19, 2013

What a complete turnaround–dare we say a “revelation”–in Niles, OH. In August, the Niles City Council voted to ban drilling. The measure they passed also prohibited the city from doing business with the drilling industry, which is a problem because the city does a lot of business with the industry (see Niles, OH Considers Vote to Rescind Ill-Advised Frack Ban). So a month after they passed the measure, City Council voted to rescind it (see Niles, OH Votes to Lift Frack Ban One Month After Passing It).

In a complete turnaround from their anti-drilling ways of just a few months ago, City Council voted yesterday, unanimously, to let Halcon Resources lay a new pipeline under a portion of city-owned land…
Read More “Niles, OH Does Complete Turnaround, Leases Land for Pipeline”
Coterra Energy (Cabot O&G) | Economic Impact | Energy Companies | Industrywide Issues | Jobs | Pennsylvania | Supply Chain | Susquehanna County

Scranton TV Station: NEPA Community Benefits from Cabot (Video)
December 19, 2013December 19, 2013

An interesting TV segment was recently filmed about the role of Cabot Oil & Gas in providing local jobs and a boost to the local economy where they drill in rural Susquehanna County, PA. The video, filmed by Scranton TV station WNEP Channel 16, highlights the partnership Cabot has developed with several vendors (supply chain) and points out Cabot’s long-term commitment to the community–a commitment that will go on for decades to come.

If you want “the other side of the story,” the side that shows what a good corporate citizen looks like and how gas drilling enormously benefits an entire community, take the time to watch this enlightening 6-minute video:
Read More “Scranton TV Station: NEPA Community Benefits from Cabot (Video)”
Best of the Rest

Marcellus & Utica Shale Story Links: Thu, Dec 19, 2013
December 19, 2013December 19, 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: Thu, Dec 19, 2013”
Energy Companies | Hydraulic Fracturing | Industrywide Issues | Litigation | New York | Norse Energy | Regulation | Statewide NY

Norse Energy Sues Gov. Cuomo to Force Release of Fracking Regs
December 18, 2013December 18, 2013

Newly appointed Norse Energy lawyer Tom West (from Albany) is a man of his word. He says what he means and means what he says. Exactly two weeks ago West had a “demand” letter hand-delivered to NY Dept. of Environmental Conservation (DEC) Commissioner Joe Martens. The letter, “demanding” to have a release date for the now 5 1/2 year-old draft fracking regulations, was also delivered to State Health Commissioner Nirav Shah and to Gov. Andrew Cuomo himself (see Tom West Demands DEC Com. Martens Release the SGEIS – Soon). The unstated threat was that if there is no response, West fully intends to file an Article 78 lawsuit against all three to force the release. Article 78 is a provision that makes recalcitrant (and ineffective) government officials do their job.

Yesterday afternoon West made good on the threat and filed the lawsuit (see a full copy embedded below). Among the justifications for requesting the court to force the release of the fracking regulations (called the SGEIS), is this “hit it out of the park” statement:
Read More “Norse Energy Sues Gov. Cuomo to Force Release of Fracking Regs”
Bradford County | Chesapeake Energy | Chief Oil & Gas | Energy Companies | Lycoming County | Pennsylvania | Sullivan County | Susquehanna County | Wyoming County (PA)

Chief O&G Buys 210K Acres/Operations in NE PA from Chesapeake
December 18, 2013December 18, 2013

Chief Oil & Gas announced yesterday that they’ve purchased 210,000 Marcellus Shale acres from Chesapeake Energy in northeast Pennsylvania. Along with the acreage comes 130,000 million cubic feet per day of natural gas production and 40 wells waiting to be completed and/or connected to a pipeline. This doubles the amount of Marcellus acreage for Chief.

The big question is, does this mean Chesapeake has now completely exited the Marcellus in northeast PA? It may well (we’re not sure). Here’s the statement by Chief about their deal with Chesapeake:
Read More “Chief O&G Buys 210K Acres/Operations in NE PA from Chesapeake”
Hydraulic Fracturing | Industrywide Issues | New York | Research | Statewide NY

USGS Study Finds 15% of NY Water Wells Already Have High Methane
December 18, 2013December 18, 2013

Well, imagine that. Even more scientific evidence has just arrived, courtesy the US Geological Survey (USGS), that there’s a whole lotta methane in the ground in the Southern Tier of New York State. So much methane that 15% of the water wells tested across nearly 2,000 square miles for more than a year by the USGS show methane levels so high that the methane needs to be monitored and/or mitigated. That is, miles away from any fracking or existing gas wells, water wells are saturated with naturally occurring methane. In case you miss the point: Fracking is NOT the cause of methane migrating to water wells in northeast PA and in New York. There is no shale fracking in NY! And yet, there’s methane–so much you can, oh, light your tap on fire?

What say you now anti-frackers? Yeah, we thought so. There’s NOTHING you can say. Your lies are exposed. Here’s the press release and a full copy of the study released yesterday by the USGS with data from their tests of water wells in NY state:
Read More “USGS Study Finds 15% of NY Water Wells Already Have High Methane”
Energy Services | Williams

Bad News: Corporate Raiders Take Aim at Williams
December 18, 2013December 18, 2013

Oh oh. Keith Meister runs a hedge fund (investment fund) called Corvex Capital. Keith Meister is a Carl Icahn student and disciple (have we told you lately how much we despise corporate raiders like Icahn?). Meister’s Corvex Capital has disclosed “surging” its position in midstream company Williams. In fact, Corvex Capital has a signed agreement with Soroban Capital Partners, another big investor in Williams. The two companies together are now the single largest shareholder in Williams. This is definitely not good news. It means the Corvex and Soroban plan to make mischief with Williams.

Corporate raiders like Icahn (and Meister) invest in companies purely to force the sale of assets and the firing of employees (i.e. to “cut costs”) in order to drive up the price of the stock, which they then turn around and sell at a huge profit. It’s sleazy, it’s slimy, and it’s the part of capitalism we don’t like (and we’re raging capitalists here at MDN HQ). Icahn, through his “tool” Doug Lawler, has forced the firings of 1,200 people at Chesapeake in the past year. Will such a fate come to Williams? We’d be nervous if we worked there…
Read More “Bad News: Corporate Raiders Take Aim at Williams”
Energy Companies | Rice Energy

Rice IPO Seeks to Raise $800M – Some Details Leak
December 18, 2013December 18, 2013

As MDN has been reporting since October, Rice Energy will, at some point, float an initial public offering (IPO) and start to trade shares on a stock exchange (see Rice Energy Rumored IPO – Dan Rice Gets Last Laugh). Last week the details started to come into focus. The company may be valued as high as $2.5B, initial initial public offering paperwork had been confidentially filed, and the public will get to the see the paperwork soon, likely in January (see Impending Rice Energy IPO Creating a Buzz).

The Rice story continues to fascinate and more information continues to “leak” out. The latest: The company is looking to raise $800M with their IPO. They’ve been losing money, but certainly not a lot as a percentage of the money they’re spending to drill. And, we have more insight into the (very young) management structure of the company…
Read More “Rice IPO Seeks to Raise $800M – Some Details Leak”
Pennsylvania | Statewide PA

Marcellus Moves PA to #2 Top NatGas Producing State
December 18, 2013December 18, 2013

Yesterday the U.S. Energy Information Administration (EIA) released an analysis that says Pennsylvania, because of the Marcellus Shale, is now the third largest producer of natural gas in the U.S., and it will almost certainly blow by Louisiana to become the #2 producer by the end of this year. PA’s production is up a mind-blowing 72% from 2011 to 2012–in one year! When the numbers are finally in this year, EIA expects another remarkable year for the Keystone State.

Also of note: For the first time (in a long time) West Virginia has broken into the top 10. Here’s the latest top-notch analysis issued by the EIA (the one government agency we actually love), that crows about PA and has a cool chart of the top 10 U.S. natural gas producing states:
Read More “Marcellus Moves PA to #2 Top NatGas Producing State”
Energy Companies | Energy Services | Industrywide Issues | Kinder Morgan | Pipelines | Seneca Resources | Tennessee Gas Pipeline

TGP Signs up Seneca Resources for Niagara Expansion to Canada
December 18, 2013December 18, 2013

MDN already brought you the announcement that Kinder Morgan, owner of the Tennessee Gas Pipeline, successfully closed an open season that will allow the the TGP to expand their service to the Gulf Coast. A second announcement from KM yesterday says they’re also expanding service northward, to eastern Canada. KM said they’ve signed up Seneca Resources (drilling subsidiary of Buffalo-based National Fuel) to ship 158,000 dekatherms of natural gas per day to eastern Canadian markets on what KM calls their Niagara Expansion Project.

Seneca and their Marcellus Shale production will be the “foundation shipper” for the $74 million Niagara Expansion. Here’s the second KM announcement from yesterday:
Read More “TGP Signs up Seneca Resources for Niagara Expansion to Canada”