Marcellus Drilling News

Industrywide Issues | Lease & Royalty Payments | Litigation | Preston County | West Virginia

Developments in WV Lawsuit to Rescind $5/Acre Leases
December 4, 2013December 4, 2013

Way back in March MDN told you about a lawsuit filed by landowners in Preston County, WV. They sued Magnum Land Services and Belmont Resources LLC to have leases they were snookered into signing for as little as $5 per acres rescinded on the basis of fraud and a variety of other legal claims (see Update on WV Lawsuit to Rescind $5/Acre Leases). There’s been a major development in the case.

U.S. District Judge Irene Keeley has dismissed charges against 19 employees from Magnum and Belmont because the paperwork was not timely. She also dismissed half the counts brought by the landowners against the companies. Plus, we now have a date for a trial: October 2014. Justice delayed…
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Energy Services | Industrywide Issues | Iroquois Gas Transmission | Pipelines

Iroquois Gas Open Season for New South-to-North Marcellus Pipeline
December 4, 2013December 4, 2013

Iroquois Gas Transmission System announced yesterday a non-binding open season to gauge interest in their new “South-to-North” project that will move and additional 300,000 dekatherms per day of Marcellus Shale gas from Pennsylvania and New York to as far north as Canada. There’s a change! Normally natural gas comes from Canada–now we’re sending it the other way.

The new “SoNo” project, as they call it, would not involve any new pipeline construction but will instead rework existing pipelines and compressor stations. Target in-service date is November 2016. The open season lasts from now until January 24, 2014…
Read More “Iroquois Gas Open Season for New South-to-North Marcellus Pipeline”
Industrywide Issues | Pennsylvania | Pipelines | Statewide PA | Supply Chain

Steel Building Manufacturer Hits it Big in the Marcellus
December 4, 2013December 4, 2013

A small regional company that builds steel buildings, located in western PA, has rocketed from the minor to the major leagues in their industry. Steel Nation Inc. is now ranked as the 11th largest metal building construction company in the country–thanks to the Marcellus Shale.

Steel Nation’s story is interesting, and instructive, for those looking to crack into the shale supply chain. It’s a story of creativity and determination…
Read More “Steel Building Manufacturer Hits it Big in the Marcellus”
Hydraulic Fracturing | Industrywide Issues | Regulation

The “Flexible” (and Capricious) Ways of EPA Admin. McCarthy
December 4, 2013December 4, 2013

It used to be that the law (and regulations, which are based on and have the power of law) were “blind” and not a respecter of men nor companies. The law was designed to apply to all equally and without exception. But when you have a law-breaker–someone who flouts the law–as your president, you then get a situation where the law is twisted to the political whims of those in power. Don’t like a particular law because you oppose it? No problem–just ignore it and don’t enforce it. Don’t like the political blow back of enforcing laws and regulations you yourself passed? No problem–just be “flexible” with how you implement said law or regulation.

The latest “flexible” Obama official is none other than newly minted EPA Administrator Gina McCarthy, who is signaling she won’t enforce the draconian carbon regulations her agency recently established that are designed to kill coal. Instead of killing coal all at once, she’ll toy with it, like a cat with mouse…
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Hydraulic Fracturing | Industrywide Issues | Regulation

US Chamber to Obama: Don’t Let EPA Screw Up Fracking Miracle
December 4, 2013December 4, 2013

One of the finest organizations in America–the U.S. Chamber of Commerce–sent a warning to President Obama yesterday to put him on notice that if the Obama Environmental Protection Agency continues down the road of federal regulation of fracking (something that is unconstitutional by the way), it will kill the very jobs and economic success that Obama has had nothing to do with but takes credit for. OK, the Chamber didn’t use that exact language, but that’s our take on their sentiment.

Chamber President Thomas Donohue essentially said “don’t go there” with respect to the EPA wanting to horn in with regulating fracking…
Read More “US Chamber to Obama: Don’t Let EPA Screw Up Fracking Miracle”
Economic Impact | Industrywide Issues | Pennsylvania | Statewide PA

Most PA Residents Pay Lowest NatGas Rates in 10 Years
December 4, 2013December 4, 2013

Limbo! How low can you go? Two-thirds of Pennsylvanians who heat their homes with natural gas will, this heating season, pay the lowest prices they’ve paid in the past 10 years, according the PA Public Utility Commission (PUC). Why? The Marcellus Shale, of course…
Read More “Most PA Residents Pay Lowest NatGas Rates in 10 Years”
CNG/LNG | Exporting | Industrywide Issues | Regulation

ACCF to DOE Sec. Moniz: Please Hurry Up LNG Export Approvals
December 4, 2013December 4, 2013

On Monday, the American Council for Capital Formation (ACCF) sent a letter to Dept. of Energy Secretary Ernest Moniz to encourage him to continue approving new liquefied natural gas (LNG) export terminals, and to “goose him along” and get him to speed up the process (full copy of the letter embedded below). To be fair, DOE has now approved five such facilities which will allow the export of LNG to countries without a free trade agreement with the U.S. However, there are another 21 applications waiting to be reviewed–and it took 65 days between the last two approvals (way too long).

ACCF respectfully requests Moniz to hurry it up in their letter, and provides him with compelling arguments for why more LNG exports should go forward…
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Best of the Rest

Marcellus & Utica Shale Story Links: Wed, Dec 4, 2013
December 4, 2013December 4, 2013

The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading:
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Hydraulic Fracturing | Industrywide Issues | Litigation | New York | Regulation | Statewide NY

Tom West Demands DEC Com. Martens Release the SGEIS – Soon
December 3, 2013December 2, 2013

Yesterday Tom West, lead attorney with The West Firm in Albany, NY, issued a “demand” letter to Dept. of Environmental Conservation (DEC) Commissioner Joe Martens (full copy of the letter embedded below). The hand-delivered letter (arrived around 12:30 pm we’re told) tells Martens that, as MDN revealed last week, The West Firm has been retained as legal counsel for Norse Energy (see Norse Energy Suing NY Gov Cuomo to Force Release of SGEIS). The letter asks (actually demands) that Martens inform West within the next two weeks of the “date certain in the near future” he plans to release the SGEIS drilling regulations…or else.

The “or else” is not spelled out in the demand letter, but we know what it is: If Martens does not release the drilling rules promptly, West will file an Article 78 lawsuit to force Martens–and Gov. Cuomo and Health Commissioner Nirav Shah–to get off their rear-ends and just do their jobs. That’s what an Article 78 is–a citizen or company’s legal way of forcing recalcitrant and disobedient public servants (Martens, Cuomo and Shah) to do the job they were hired to do. So three cheers for Norse Energy and Tom West! Finally we should start to see a resolution to the 5 year, 4 month and 10 day old defacto ban (i.e. “moratorium”) on shale drilling in New York…
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Ohio | Statewide OH | Utica Shale

OH Utica Shale Status Report – Red Hot & Growing
December 3, 2013December 2, 2013

The Utica Shale is being developed faster than other shale plays–it is perhaps the fastest ramp-up in the short history of U.S. shale plays: 0 to almost 1,000 shale wells permitted (609 of them drilled) in the last 3 years. Some of the lessons being learned in the Utica are being carried to other, more “mature” plays like the Marcellus and the Bakken. So what’s going on in the red hot Utica?

A status report on the Utica Shale, courtesy the Youngstown Business Journal and the recent DUG East conference in Pittsburgh…
Read More “OH Utica Shale Status Report – Red Hot & Growing”
Economic Impact | Industrywide Issues | Ohio | Pennsylvania | Statewide OH | Statewide PA | Statewide WV | West Virginia

List of U.S. Shale Plays Ranked by Profitability (IRR)
December 3, 2013December 2, 2013

Thanks to our ever-helpful second set of eyes, Chris Acker, MDN was alerted to a Seeking Alpha article with a table showing the Internal Rate of Return (IRR) for commercially developed U.S. shale plays. It is a way of ranking shale plays (specific regions within plays) that shows the profitability of the plays. The higher the IRR percentage, the better/more profitable that play is. A dollar of investment goes further with a higher IRR.

And what did we spot in scanning the chart? The top spot–the most profitable shale play in America–is the “Marcellus Super Rich” area located in southwest PA and the northern panhandle of WV. The second most profitable play, virtually tied with the Marcellus? The “Utica Liquids Rich” region in eastern OH. It’s a fascinating table. Have a look…
Read More “List of U.S. Shale Plays Ranked by Profitability (IRR)”
Industrywide Issues | Jobs | Ohio | Statewide OH | Utica Shale

The Real Employment Numbers in Ohio’s Utica Shale
December 3, 2013December 2, 2013

There’s a lot of trash talking about how many jobs shale drilling “actually” creates–by those desperate to stop drilling. In classic disinformation style they throw out wildly inflated numbers, say those of us on the pro-drilling side made those claims, and then knock down the “straw man” they created when employment numbers don’t measure up. “See! The drilling industry lied to you about how many jobs they would create.” That’s the tact they use to try and discredit this jobs-creating industry.

The truth is, shale drilling has created thousands of new, direct jobs in the oil and gas industry–in Pennsylvania, West Virginia and Ohio. It’s also created thousands more jobs in related industries, like environmental consulting, trucking, etc. So let’s, for a change, talk about real numbers, shall we? The Ohio Dept. of Job and Family Services, official tallying agency for employment numbers in Ohio, says Ohio’s natural gas and shale employment numbers have gone up 30% over the past two years…
Read More “The Real Employment Numbers in Ohio’s Utica Shale”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues

Martin Sheen Pimps Himself for Anti-Frackers
December 3, 2013December 2, 2013

No one has ever mistaken actor Martin Sheen for someone who’s actually smart. He’s a good actor, but not that good! However, Sheen is pleasant enough to watch, especially as he ages. And he has a nice voice–perfect for voice over work. So Sheen supplements the long periods when the phone doesn’t ring by pimping himself out to liberal/loony causes. The latest “Martin for hire” work is playing now–an “expose” on fracking.

Apparently the program airing the so-called expose is called Breakthroughs–a semi-regular series on PBS narrated by Sheen, who dutifully reads what is set before him–outright lies, big huge whopper lies, and smaller insidious lies–but all lies. Sheen doesn’t care he’s lying to you–he’s getting paid by whomever. For the fracking episode Sheen is being paid by the rabidly anti-drilling Environment America to pedal their pap to the snooty crowd that watches public television…
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CNG/LNG | Industrywide Issues | New York | NG Vehicles | Regulation | Statewide NY | Trucking

21 LNG Fueling Stations Coming to NY in Next 5 Years, Maybe
December 3, 2013December 2, 2013

Recently MDN brought you the story that New York State is the only state in the union that does not allow liquefied natural gas (LNG) storage and fueling stations (see LNG Storage/Fueling Stations Latest Anti-Drilling Target in NY). Such facilities were banned after a tragic accident at a Staten Island LNG facility killed 40 workers in the early 1970s. Wacko anti-drillers oppose building new ones because, well, they’re wacko. Calmer heads, however have prevailed and the Dept. of Environment Conservation expects to finalize new regulations early next year to allow construction of LNG storage/fueling facilities that can super-cool and store natural gas in a liquefied state.

Why is it important that NY get with the program? Why do we need LNG anyway? Because entire trucking fleets–like that of UPS–are converting from diesel to LNG because it’s cleaner burning and cheaper. LNG is a true win/win, regardless of what the ninny nanny naysayers say. Once the new regs are in place, the DEC estimates NY will see 21 new LNG facilities built over the next five years…
Read More “21 LNG Fueling Stations Coming to NY in Next 5 Years, Maybe”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Regulation

National Park Service Tosses Ingraffea Anti-Frack Comments Out
December 3, 2013December 2, 2013

Someone who used to work at the National Park Service (NPS) is probably in the unemployment line this week because he or she made the boss look bad. Last week the NPS had to retract negative comments inserted by an unnamed (and hopefully unemployed) NPS staffer about shale drilling in the official NPS position on fracking forwarded to the Bureau of Land Management. The BLM is formulating their own rules to regulate fracking on federal lands and wanted (intelligent) input from other agencies.

As part of the official comments/views on fracking from NPS, some ~~idiot~~ unnamed staffer at NPS actually quoted the goofy Cornell professor Tony Ingraffea and his wild ideas (published in the compliant New York Times) about fracking being “a gangplank to more global warming.” Whatever Tony. NPS now says they don’t agree with those crackpot comments…
Read More “National Park Service Tosses Ingraffea Anti-Frack Comments Out”
Hydraulic Fracturing | Industrywide Issues | Public Opinion

Don’t Know Much About Geology (or Fracking)
December 3, 2013December 2, 2013

A majority of Americans are clueless when it comes to fracking. They don’t know what it is! For those of us who have tracked and followed the issue for years, it’s beyond comprehension–but there is a wide swath of the American public that either doesn’t care, or hasn’t felt the need to tune in to the debate over their energy future.

A recent survey of Americans found that 58% (!) don’t know anything about fracking–don’t know what it is, don’t know what it does–they just don’t know. It’s sad. However, it’s also a huge opportunity for those of us on the pro-drilling side of the debate to educate them on the objective truth–on the benefits of fracking and what it means for every single citizen in the country…
Read More “Don’t Know Much About Geology (or Fracking)”