Marcellus Drilling News

Pennsylvania | Statewide PA

PA’s State Energy Plan: All of the Above…AND Below!
January 23, 2014January 23, 2014

Pennsylvania Gov. Tom Corbett continues to impress and confound Democrat governor wannabes like John Hanger who seek to replace him. The Dems have been salivating like mad dogs at the prospect of winning back the governor’s chair in November. For them and their mainstream media accomplices (we were going to say media whores, but thought that may be a tad to strong from the family-friendly MDN), it’s a foregone conclusion that Corbett is history…toast…on the way out. But Corbett, long accused of being a “tool” of the drilling industry by jealous Luddites on the anti-drilling side, still has some fight left in him, and he came out swinging earlier this week when he introduced his PA State Energy Plan. In stark contrast to the puffery and flummery offered up by NY Gov. Andrew “the ditherer” Cuomo with his energy plan from a few weeks ago (see NY Releases a Draft (Frackless) State Energy Plan), the PA plan is a breath of fresh air for Pennsylvanians.

The title of Corbett’s energy plan says it all: Energy = Jobs. In a turn of phrase we absolutely love (taking a jab at the empty PR platitudes from Obama), Corbett’s plan doesn’t pick any winners or losers to support, he supports all options, something he calls an “all of the above — AND below” strategy. Love it! Something else we love about Corbett is his philosophy of government: Corbett says government doesn’t create jobs, private industry does. Government’s job is to protect public health and safety and create an positive atmosphere for job creators. Wow! When was the last time a politician finally “got it”? A politician whose actions back up his words? A politician with guts? That’s Tom Corbett…
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Energy Companies | Rice Energy

Rice Energy IPO Launches Tomorrow, Fri Jan 24
January 23, 2014January 23, 2014

MDN previously told you that Rice Energy, a northeast-only driller with operations and acreage in both the Marcellus and Utica Shale, would soon go public with an IPO (see Rice Energy Launches IPO, Hopes to Raise $840M). The date for the IPO–the initial public stock offering–is now fixed: Friday, Jan. 24. Tomorrow. Rice hopes to raise $840 million in new investment to help with their planned $1 billion of drilling investment in the Marcellus/Utica for this year. Will they get it? That’s the million, or rather billion dollar question. We hope so!

MDN has covered various parts of the Rice story previously (see our Rice Energy category listing for all past MDN stories). However, an article published yesterday on the Seeking Alpha website does a good job of corralling all of the details into a single, easy-to-read article. While the article is aimed at those considering an investment in Rice, we found the information helpful for landowners, supply chain businesses and others with an interest in Rice. Forthwith:
Read More “Rice Energy IPO Launches Tomorrow, Fri Jan 24”
Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

PA DEP Extends Roadshow for Public Comment on New Drilling Rules
January 23, 2014January 23, 2014

Roadshow! The Pennsylvania Environmental Quality Board (EQB), a division of the state Dept. of Environmental Protection (DEP), has been in the midst of a 60-day tour, visiting different locations across the state, to elicit public comment on proposed new Marcellus Shale drilling rules called for under the Act 13 law passed in early 2012 (see PA DEP Launches Public Comments on New Drilling Rules, Roadshow).

Must be the EQB is having fun because they’ve just extended the roadshow for another 30 days. Instead of wrapping up public comments on the proposed new drilling rules by Feb. 12, the new deadline will be Mar. 14. Oh, and they’ve added a couple of more stops to the roadshow tour: Troy and Warren, PA. Here’s the EQB roadshow extension announcement:
Read More “PA DEP Extends Roadshow for Public Comment on New Drilling Rules”
Energy Services | GreenHunter Resources | Industrywide Issues | Ohio County | Wastewater | West Virginia

Bumpy Ride for GreenHunter Because of WV Coal Chemical Spill?
January 23, 2014January 23, 2014

Is there a connection between the recent chemical leak in West Virginia that cut off water for 300,000 people–a leak related the coal industry–and GreenHunter Water’s plans for a frack wastewater recycling plant in Wheeling, WV? Perhaps. No, GreenHunter had nothing to do with the chemical spill that made national headlines for weeks (see Coal Industry Blamed for West Virginia Chemical Spill). But because GreenHunter plans to store fracking wastewater in tanks above ground “mere yards from the Ohio River” as one article says, they are now coming under increased scrutiny. One might say they’re now under a microscope.

MDN has covered the long road for GreenHunter in establishing the Wheeling wastewater recycling facility (see these MDN articles). Just when it appeared that the path was clear–and that even the U.S. Coast Guard would finally grant GreenHunter permission to barge frack wastewater from the Wheeling facility–the coal-related chemical spill happened, which may end up adversely affecting the GreenHunter project…
Read More “Bumpy Ride for GreenHunter Because of WV Coal Chemical Spill?”
Energy Companies | Marion County | Marshall County | Trans Energy | West Virginia

Trans Energy’s WV Focus Paying Off – IP Numbers for 8 Wells
January 23, 2014January 23, 2014

Trans Energy is a smaller, “pure play” driller in the WV Marcellus Shale. MDN told you last October that Trans Energy had sold off it’s holdings in Tyler County, WV in order to focus on drilling in Marshall, Wetzel and Marion counties (see Trans Energy Sells Off Holdings in Tyler County, WV – Who Bought?).

Looks like focusing is paying off for Trans Energy. Tuesday the company provided an update on production for 8 of their wells in Marion and Marshall counties. The IP (initial production) numbers look pretty darned good to us…
Read More “Trans Energy’s WV Focus Paying Off – IP Numbers for 8 Wells”
Allegheny County | Industrywide Issues | Pennsylvania | Supply Chain

Former Marcellus Coalition CEO Katie Klaber Starts Consultantancy
January 23, 2014January 23, 2014

Con•sult•ant: a person who provides expert advice professionally. Synonyms: adviser, expert, specialist, authority, pundit. One of our favorite Marcellus personalities, Kathryn (Katie) Klaber, former CEO of the Marcellus Shale Coalition, has finally turned up again–as a consultant. Katie has begun her own consulting practice along with partner Ron Pettengill, a Wall Street IT wizard. It will be no surprise that Katie’s new consulting firm will focus on shale, and, if we read her press announcement correctly, help companies navigate the tricky PR waters of aggressive development while maintaining good relations with the public. And Katie should know, because she helped build the enormously successful MSC to its current 300 members–those members being some of the largest upstream (drilling) and midstream (pipelines) companies in the world.

The Marcellus Shale has become the hottest of the hot shale plays in the United States–and Katie Klaber had a hand in that success. She’s now turning her expertise, specialization and authority into a consulting practice that will deliver her knowledge to companies across the country. Here’s the press announcement from Katie about her newly formed consulting practice, including a couple of customers she’s already serving (advising the Babst Calland law firm and working with global consulting firm Blue Water Growth)…
Read More “Former Marcellus Coalition CEO Katie Klaber Starts Consultantancy”
Lease & Royalty Payments | Ohio | Statewide OH

Lease Signing 101 for Landowners – A Short Q&A with OH Attorney
January 23, 2014January 23, 2014

What should landowners know–what questions should they have answers for–before they sign an oil and gas lease? Attorney Dan Gerken from Ohio law firm Bricker & Eckler tackles the important questions landowners should know the answers to in an online post that we think of as “lease signing 101.” It doesn’t hurt to cover the basics from time to time as new landowners are approached and begin the process of trying to figure out what they should do.

Here’s Dan’s good all-around “basics” Q&A advice:
Read More “Lease Signing 101 for Landowners – A Short Q&A with OH Attorney”
Economic Impact | Energy Services | Fayette County | Industrywide Issues | Jobs | Pennsylvania | Williams

Williams Expands in PA Again, Adds Local HQ in Fayette County
January 23, 2014January 23, 2014

Although headquartered in Tulsa, Oklahoma, Williams–one of the largest (perhaps the largest) midstream company in the Marcellus and Utica Shale–continues to expand its footprint in the northeast. The latest area where Williams is expanding is southwest PA–Fayette County to be precise. Williams recently opened a new local headquarters for their Williams Energy division in Fayette. The new location currently employs 75 people (so far).

Here’s the story of Williams’ ongoing expansion in SW PA…
Read More “Williams Expands in PA Again, Adds Local HQ in Fayette County”
Bradford County | Chief Oil & Gas | Energy Companies | Pennsylvania

Chief O&G Adds Field Office/Jobs in Bradford County, PA
January 23, 2014January 23, 2014

Chief Oil & Gas is expanding–in Wyalusing, PA. Where the heck is Wyalusing (population 564)? Smack in the middle of Bradford County, not far from Towanda, PA. Bradford is one of (perhaps the most) drilled Marcellus Shale counties in the state. It certainly makes sense for Chief to set up shop there–especially since Chief owns 210,000 acres of leases and operates 100 wells in the area!

The new field office in Wylausing consists of three trailers and 12 employees–at least for now…
Read More “Chief O&G Adds Field Office/Jobs in Bradford County, PA”
Industrywide Issues | Research

Japan Researchers Say Life Wouldn’t have Begun without Natgas
January 23, 2014January 23, 2014

Anti-drillers seems to be susceptible to believing in fairy tales–like the myth of man-made global warming. Here’s a new fairy tale anti-drillers may not like so much. This one comes from researchers at the Tokyo Institute of Technology (TIT). In a press release laced with a lot of maybes, could-of’s and probably’s, the bright minds at TIT have a new theory: One of the key substances found on earth today was a necessary component in the formation of life on earth–it was a necessary ingredient in the primordial soup of life. And what, you may ask, is that key, critical chemical compound? CH4…otherwise known as methane…otherwise known as natural gas.

Oh no! Say it ain’t so!! Not natural gas?! Yep. The same anti-drillers who tell you the world will end by burning natural gas wouldn’t even be here (according the TIT fairy tale) without it. Talk about ironic…
Read More “Japan Researchers Say Life Wouldn’t have Begun without Natgas”
Best of the Rest

Marcellus & Utica Shale Story Links: Thu, Jan 23, 2014
January 23, 2014January 23, 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, Jan 23, 2014”
Energy Services | Industrywide Issues | Litigation | MarkWest Energy | Pennsylvania | Pipelines | Processing Plants | Regulation | Sunoco Logistics | Washington County

PA Judge Hears Mariner East NGL Pipeline Eminent Domain Case
January 22, 2014January 22, 2014

Sunoco Logistics–and for that matter, MarkWest–have a lot riding on a single court case in Washington County, PA. It might be a bit melodramatic to say the future of the Mariner East NGL (natural gas liquids) pipeline hangs in the balance, but it certainly is not inaccurate to say the case could cause an extended delay–if it goes the “wrong” way (for Sunoco). What’s the case about?

Sunoco’s Mariner East “refined products” pipeline spans the entire state of Pennsylvania. In order to connect to that pipeline to ship propane and ethane to the Marcus Hook refinery near Philadelphia, Sunoco first has to build a 50-mile feeder pipeline from the MarkWest processing plant in Houston (Chartiers Township) to Delmont (see the Sunoco map below). The problem is, a group of landowners in Washington County won’t play ball and lease their land to Sunoco to bury the pipeline. Sunoco got tired of negotiating with the recalcitrant landowners, and changed tactics to declare it (Sunoco) has eminent domain power under PA state authority. They sue the 25 landowners for force them to allow the pipeline. The landowners sued back arguing the 50-mile pipeline should come under federal, not state, authority. One of the 25 cases is being used as a proxy for the others and that case was just argued yesterday before a PA judge. A decision, according to the judge, will be “prompt”…
Read More “PA Judge Hears Mariner East NGL Pipeline Eminent Domain Case”
Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

CSSD Makes Case for Quasi-Regulation of Marcellus Drilling
January 22, 2014January 22, 2014

Yesterday MDN told you that the Center for Sustainable Shale Development (the CSSD) is back, in a big way (see Center for Sustainable Shale Comes Roaring Back (to Life)). About the time we posted that story, we received a number of announcements from the CSSD. One of those announcements was about a session for the press–to listen to and ask questions of CSSD interim director Andrew Place (from EQT) and former governor and EPA administrator Christine Todd Whitman. MDN dialed in to listen, this is what we heard…
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Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

Are CSSD’s Standards Really Needed? Comparison with PA/OH/WV/Feds
January 22, 2014January 22, 2014

The Center for Sustainable Shale Development (CSSD) has a big hurdle to leap–convincing drillers to spend a lot of money and time (up to $50,000 and hundreds of hours) to become CSSD certified–and then ongoing monitoring to keep that certification. They’re using a carrot and stick. The carrot is that if you become certified, you’re elite, you’re “in”, you’re special–and landowners will be able to trust you. You’ll have the “Goodhouskeeping seal of approval” on your drilling because you’ve got the cert. The stick is that if you don’t get certified, you’re suspect, you’re in the “out” crowd, you’re not “one of us” and therefore landowners should be wary of signing a lease to have you drill on their property.

Beyond the perceptions, the real question is whether or not the standards themselves will achieve what they say they will achieve–safer and “sustainable” drilling that does a minimum amount of damage to the environment while retrieving low-cost, more efficient and better for the environment natural gas. But wait (you may ask), don’t the states and even the feds already have a bookshelf full of standards and regulations drillers must follow? Indeed they do. The CSSD says, in essence, those standards are fine, but our (CSSD) standards are far better. The crux of the CSSD argument is that you should voluntarily (with peer pressure and cajoling) follow our standards because we have PA, OH, WV and even the feds beat on how strict and yummy good for the environment our standards are over theirs. In fact, the CSSD has produced a chart (embedded below) to “prove” it…
Read More “Are CSSD’s Standards Really Needed? Comparison with PA/OH/WV/Feds”
CONSOL Energy | Energy Companies

CONSOL Update: Spending $1.5B in 2014, Production Target 235 Bcfe
January 22, 2014January 22, 2014

CONSOL Energy continues its rapid transformation from coal producer to natural gas producer. Yesterday the company issued an update reiterating their intention to hike natural gas production by 30% this year. To do it, they plan to spend up to $1.5 billion on drilling and capital investments. That’s a whole lotta dough. Most of that will be spent in the Marcellus and Utica Shale (CONSOL is headquartered in Pittsburgh).

Below is CONSOL’s announcement in which they tell us where, and how, they plan to dramatically increase natural gas production in 2014:
Read More “CONSOL Update: Spending $1.5B in 2014, Production Target 235 Bcfe”
CONSOL Energy | Energy Companies

New CNX Gas COO Tim Dugan – Marcellus & Utica Experience
January 22, 2014January 22, 2014

Back in November, MDN told you that the top dog guy who runs the exploration and production (E&P) division of CONSOL Energy, Randy Albert, is retiring (see CNX Gas Chief Randy Albert Retiring, Search On for Successor). We were truly sorry to see him go. We’ve met Randy and liked him.

Today, we’re happy to report a new COO for the E&P division–someone who’s been around the Marcellus/Utica block a few times and knows the ropes well: Tim Dugan. Here’s the CONSOL announcement about Tim taking the reigns at CNX Gas…
Read More “New CNX Gas COO Tim Dugan – Marcellus & Utica Experience”