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Marcellus Drilling News
  • Accidents | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Jay-Bee Oil & Gas | Tyler County | West Virginia

    Frack Tank Explosion in Tyler County Shuts Down Jay-Bee Pad

    January 15, 2014January 15, 2014

    Try as we might, sometimes an important news story slips by our otherwise keen eye on the Marcellus and Utica. Case in point: On Jan. 2 there was a rare accident at a shale drilling site in Tyler County, WV, a drill site operated by WV-based Jay-Bee Oil & Gas. A flow-back tank on the drill pad exploded, injuring a worker at the site and causing the spill of a “black sludge” onto a neighboring field. The West Virginia Dept. of Environmental Protection (DEP) shut down the Lisby drill pad operation, which is located along Big Run Road, roughly 6 miles southeast of Middlebourne, WV, and issued Jay-Bee a citation over the incident.

    Jay-Bee was supposed to have provided a report to the DEP by yesterday outlining what happened and why. The DEP is also requiring Jay-Bee to provide a best management practices plan for flow-back tank systems at all of its operations in WV. In other words, Jay-Bee is now on the hot seat and needs to prove to the DEP that they can operate safely. Here’s what we can so far find about the accident, including the WVDEP’s statement about it…
    Read More “Frack Tank Explosion in Tyler County Shuts Down Jay-Bee Pad”

  • Allegheny County | Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation

    Bobby Vagt Leaves Heinz, Will Become Chairman of Rice Energy

    January 15, 2014January 15, 2014

    Looks like Bobby Vagt, current and soon to be former president of the Heinz Endowments, will get the last laugh. Vagt, you may recall, announced his “retirement” as president of the Heinz Endowments in October of last year. It has never been confirmed, but there’s plenty of anecdotal evidence to suggest mommie dearest Teresa Heinz Kerry bounced him out for his participation in helping to form the Center for Sustainable Shale Development (see Bobby Vagt Out as Pres of Heinz Endowments – Fracking Connection?). Momma Teresa never gave Bobby permission to get that cozy with the drilling industry, and that, dear friends, was a no-no for Bobby.

    So Bobby is taking off. And where is he going? To become chairman of the board at Rice Energy, once they complete their IPO (see Rice Energy Launches IPO, Hopes to Raise $840M). Bobby is already a wealthy man, but helping to steer the direction of Rice Energy will no doubt make him a lot wealthier. Which is amusing to MDN. You see, Bobby is making his money the old-fashioned way–he’s earning it. Momma Teresa made her money the liberal way–she married it. Here’s the story about Bobby saying bye-bye to Teresa and heading off to (much) greener pastures…
    Read More “Bobby Vagt Leaves Heinz, Will Become Chairman of Rice Energy”

  • Crosstex Energy | Devon Energy | Energy Companies | Energy Services | EnLink Midstream | Industrywide Issues | Pipelines | Processing Plants

    Crosstex Energy Gets a Name Change, Merger with Devon Proceeds

    January 15, 2014January 15, 2014

    In October, Devon Energy (a major shale driller in several plays with midstream assets) and Crosstex Energy (a sizable midstream company) announced they will merge their midstream operations into a new company (see Devon Energy & Crosstex Energy Form New Midstream Company in JV). Both companies have major operations in the Marcellus/Utica. At the time of the announcement the new company was unnamed. No longer. Yesterday Devon and Crosstex announced that Crosstex would change its name to the name of the newly combined venture (which is majority owned by Devon). The new name is EnLink Midstream. Barry Davis, CEO of Crosstex will become (or remain) CEO of EnLink.

    May we net-net this? Essentially Devon has purchased Crosstex and turned it into a semi-autonomous subsidiary, keeping the Crosstex management team in place. Here’s the statement issued yesterday with details of the legal structure for the new company, which on paper will be two companies for investment purposes–an LLC and an LP (master limited partnership)…
    Read More “Crosstex Energy Gets a Name Change, Merger with Devon Proceeds”

  • Energy Companies | Industrywide Issues | Pennsylvania | Range Resources Corp | Regulation | Washington County

    Mt. Pleasant Zoning Bd Says Range Water Impoundments in Violation

    January 15, 2014January 15, 2014

    Starting last August, Range Resources has been in a battle with the board of supervisors for Mt. Pleasant Township in Washington County, PA. The issue, the bone of contention, has been four water impoundments–three of which are for fresh water, essentially ponds (see Range Resources Argues with Mt Pleasant over Water Impoundment). The impoundments were originally used to drill nearby Marcellus Shale wells, several years ago. Since then, Range has continued using them, but now uses them to drill wells that are not nearby, in Mt. Pleasant Township. And the supervisors object.

    In December it appeared there was a sliver of good news when the township said Range could proceed with converting one of the impoundments to an above ground enclosed tank impoundment for recycled waste water, subject to certain terms and conditions (see Range Strikes Deal with Mt Pleasant for 1 of 4 Water Impoundments). It now seems that was a bit too optimistic. On Monday the Mt. Pleasant Zoning Hearing Board (different group of people from the board of supervisors) voted unanimously to uphold notices of violation issued by the township’s zoning officer against the four Range impoundments, so here we go again…
    Read More “Mt. Pleasant Zoning Bd Says Range Water Impoundments in Violation”

  • Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Statewide PA

    Reminder: Ben Franklin Shale Gas Contest Deadline is Feb 1

    January 15, 2014January 15, 2014

    MDN previously told you about the Ben Franklin Shale Gas Innovation and Commercialization Center’s $100,000 contest (see 2014 Ben Franklin Shale Gas Contest – $100K in Cash Prizes!). A gentle reminder that the Institute’s deadline to apply to receive one of four $25K prizes for an up-and-coming innovator is quickly approaching–February 1st. Here’s more details from the Institute:
    Read More “Reminder: Ben Franklin Shale Gas Contest Deadline is Feb 1”

  • Best of the Rest

    Marcellus & Utica Shale Story Links: Wed, Jan 15, 2014

    January 15, 2014January 15, 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: Wed, Jan 15, 2014”

  • Anti-Drilling/Fossil Fuel | Broome County | Delaware County | Hydraulic Fracturing | Industrywide Issues | Litigation | New York | Regulation | Statewide NY

    Breaking: NY Court Decisions in Binghamton & Sidney Cases

    January 14, 2014January 14, 2014

    exclusiveAn important development in two New York court cases that potentially impacts shale drilling in the state–and no, neither is (directly) about the Dryden or Middlefield town ban cases currently before New York’s highest court, the Court of Appeals. The two cases we’re referring to are (1) the City of Binghamton and their ill-fated “moratorium” thrown out by a lower court judge in 2012 and subsequently appealed, and (2) a similar moratorium in the Town of Sidney, NY.

    In the Binghamton case, the appeal of the tossed-out fracking moratorium authored by anti-drilling husband and wife team of David and Helen Slottje has been withdrawn–so that case is now officially ended and the moratorium remains tossed and unenforceable. This is big news with big implications. In the case of Sidney, the judge in that case (different judge from the Binghamton case) issued a decision yesterday, but as of the time we wrote and posted this story, we still do not have a copy of the decision. We’ll post it as soon as we get it. Let’s dive deeper into both cases…

    (Important update at the end of this article)
    Read More “Breaking: NY Court Decisions in Binghamton & Sidney Cases”

  • Energy Companies | Rice Energy

    Rice Energy Launches IPO, Hopes to Raise $840M

    January 14, 2014January 14, 2014

    MDN told you last month that Marcellus and Utica Shale driller Rice Energy would soon launch an initial public offering (IPO) and start to trade publicly listed stocks (see Impending Rice Energy IPO Creating a Buzz). Rice Energy launched their IPO yesterday. Previous chatter was that the company would receive a valuation of $2.5 billion. That’s not how much the stock offering would generate–but the overall value the market would give to the company (market capitalization, or “market cap”).

    Rice, in a statement issued yesterday (see below), announced they have now floated 40 million shares of common stock and hope to get $19-$21 per share (30 million of that for the company, 10 million for an unnamed “selling stockholder”). If that happens, the company and the selling stockholder together will receive $840 million. For comparison, a larger Marcellus/Utica driller, Antero Resources, went public last October and sold over 35 million shares with their IPO and raked in $1.57 billion ($44 per share)! The Antero IPO valued the company at $11 billion. Antero’s IPO did much better than they hoped. Will Rice’s?…
    Read More “Rice Energy Launches IPO, Hopes to Raise $840M”

  • Bradford County | Energy Services | Greene County (PA) | Industrywide Issues | Lycoming County | Pennsylvania | Pipelines | Preston County | PVR Midstream | PVR Partners | West Virginia | Wyoming County (PA)

    PVR Partners Marcellus Pipeline Flows Increase 60% in 1 Year

    January 14, 2014January 14, 2014

    Midstream company PVR Partners issued an update yesterday to brag about their Marcellus operations–and well they should. Average throughput on the PVR “Eastern Midstream Systems” increased 60%, from 1.1 billion cubic feet per day average in December 2012 to 1.8 Bcf/d in December 2013. They also completed a total of 101 well connections in 2013 for the Eastern Midstream area.

    PVR’s Eastern Midstream includes operations in Lycoming, Wyoming, Bradford and Greene counties in Pennsylvania, and Preston County in West Virginia. Here’s the full PVR update with more details:
    Read More “PVR Partners Marcellus Pipeline Flows Increase 60% in 1 Year”

  • Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

    PA Democrat Gov Candidates Support Partial/Full Moratorium

    January 14, 2014January 14, 2014

    Last night, eight Democrat candidates participated in a forum in Philadelphia, all of them seeking the Democrat nomination for governor to run this November. Pay close attention: Seven of the eight support a shale drilling moratorium–either statewide or in certain parts of the state. This is profoundly bad news if the good citizens of PA are unwise enough to elect one of them to the governorship.

    If you want a good idea of the calamity that awaits PA in choosing a Democrat governor, House and Senate, PLEASE read (or re-read) MDN contributor Chris Acker’s article here: Guest Post: Pennsylvania Drilling Moratorium – Good or Bad?. Here’s how it played out last night in Philly with regard to Democrat support for a moratorium on shale drilling:
    Read More “PA Democrat Gov Candidates Support Partial/Full Moratorium”

  • Industrywide Issues | Meetings

    2013 Northeast Oil & Gas Award Finalists Announced

    January 14, 2014January 14, 2014

    Envelope please! And the winners are… sorry, but you’ll have to wait to find out. However, we do have a list of the finalists for the 2013 Northeast Oil & Gas Awards.

    Below are the names of the finalists, and details about the awards ceremony being held on March 20 in Pittsburgh (MDN will be there!)…
    Read More “2013 Northeast Oil & Gas Award Finalists Announced”

  • Belmont County | Blue Racer Midstream | Economic Impact | Energy Services | Industrywide Issues | Jobs | Marshall County | Ohio | Ohio County | Pipelines | Processing Plants | West Virginia | Williams

    Utica/Marcellus Construction Spending Rockets in Wheeling Area

    January 14, 2014January 14, 2014

    According to McGraw Hill Construction, the Wheeling, WV Metropolitan Statistical Area, which includes Ohio and Marshall counties in WV and Belmont County in Ohio, saw construction explode from $60.3 million in 2012 to $1.57 billion in 2013–a 29-fold increase. The vast majority of that explosion in construction came from–you guessed it–the Marcellus and Utica Shale. Midstream companies Williams and Blue Racer spent the majority of that on new processing plants and pipelines in the area.

    This is incredibly good news for that area of the Ohio Valley. The even better news? Ironworkers Local No. 549 predicts this kind of spending by the drilling industry will go on for at least another 5-10 years. Wow!…
    Read More “Utica/Marcellus Construction Spending Rockets in Wheeling Area”

  • Statewide VA | Virginia

    Fracking Finally on the Way in Virginia? Maybe Yes, Maybe No

    January 14, 2014January 14, 2014

    An article out of Virginia caught our eye, about the potential for drilling and fracking in Virginia, which has so far been pretty devoid of horizontal drilling and high volume fracking. In reading the article it was like rewinding the tape and hearing the same concerns and arguments we heard 2-3 years ago in Pennsylvania, Ohio and West Virginia. Funny how the same things keep coming around again and again. Folks who watch HBO and Gasland get stirred up and are understandably concerned, afraid their water supplies will become contaminated with nasty chemicals from fracking–which of course has never happened…anywhere. But still, people have to read and understand and become comfortable with an unfamiliar-to-them process.

    The article from Virginia was about potential drilling perhaps a year off–in an area that’s not the Marcellus Shale. The focus of the article–and the potential drilling that will take place–is the Taylorsville Basin along the eastern/central part of the state, around Caroline County, VA. Even though there’s no Marcellus or Utica anywhere in that area, the article still has implications for shale drilling that may one day happen along the western edges of Virginia where there is Marcellus acreage. The implications? Republican state lawmakers seem a bit too eager to introduce legislation that bans fracking in water aquifers–legislation that may have a spillover effect in other areas of the state, including the Marcellus…
    Read More “Fracking Finally on the Way in Virginia? Maybe Yes, Maybe No”

  • Alternative Energy | Anti-Drilling/Fossil Fuel | Industrywide Issues | Pipelines

    Natural Gas’ “Unfair Advantage” over Wind and Solar

    January 14, 2014January 14, 2014

    Yet another novel argument is being trotted out by the militant green left–natural gas an an “unfair” advantage. You see, it’s just too darn easy to build a pipeline–compared with putting up an electrical transmission line. That’s the cockamamie argument now being made by renewable energy zealots like Jaafar Rizvi, writing in Grist Magazine.

    As MDN has shouted for years now–the shale drilling debate is not really about water contamination, truck traffic and “fugitive” methane–it’s really about a few misguided people who want to pick your energy source for you–and for everyone else too. They irrationally hate fossil fuels because fossil fuels, including natural gas, threaten to slow the adoption of so-called renewable sources of energy, like wind and solar. How do wind and solar energy get to market? Via high voltage electricity transmission lines. According to Mr. Rizvi, it’s not a fair playing field between natgas pipelines and electric transmission lines…
    Read More “Natural Gas’ “Unfair Advantage” over Wind and Solar”

  • Hydraulic Fracturing | Industrywide Issues

    New Fracking Book from ABA Good for Lawyers & Laymen Alike

    January 14, 2014January 14, 2014

    The American Bar Association has just published a new book on fracking titled “Beyond the Fracking Wars.” According to the press announcement, the book ($119) strikes a balance between the legal, regulatory, social and technical aspects of fracking. It further explains the numerous policy choices and decisions that influence fracking development and expansion, taking an approach that is neither pro- nor anti-fracking. A “just the facts, ma’am” kind of book.

    The ABA announcement:
    Read More “New Fracking Book from ABA Good for Lawyers & Laymen Alike”

  • Anti-Drilling/Fossil Fuel | Industrywide Issues

    MoveOn.org Launches FrackingFighter Campaign (Try not to Laugh)

    January 14, 2014January 14, 2014

    The extreme left wing group MoveOn.org has spawned a new effort called Fracking Fighters which “seeks to slow down the fracking boom that is anticipated to occur across the United States in 2014 and beyond.” They’ve decided to put a massive $50,000 behind the effort. So far they’ve gotten 100 signups for their trouble. Big whup.

    For those too young to remember, MoveOn.org was started in 1998 to encourage Congress to “move on” and forget about impeaching then President Bill Clinton who lied under oath (perjury) about getting a bj in the Oval Office from intern Monica Lewinski. Getting a bj in the White House is a resume enhancer for the moral-less left–they secretly envied Bill and wanted to be just like him. Long after bj Bill had left town, MoveOn stuck around to support other really important causes, like slowing down fracking. Wait, it’s OK for Bill to frack, but not anyone else? How does that work??…
    Read More “MoveOn.org Launches FrackingFighter Campaign (Try not to Laugh)”

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