Marcellus Drilling News

Hydraulic Fracturing | Industrywide Issues | Research | Soil | Statewide WV | Wastewater | West Virginia

WVU Prof Stokes Radioactive Fears, Says DEP Study Missing Research
January 7, 2014January 7, 2014

Here’s a story that we confess, we’re having a tough time wrapping our brains around. Allegations are swirling in West Virginia that one of three officially conducted studies for the state’s Dept. of Environmental Protection (DEP) released last year overlooked important data collection. The study in question was completed in December 2011 and released in February 2012. Titled “Pits and Impoundments Final Report,” the report looks at frack wastewater impoundments and water pits used in horizontal Marcellus Shale drilling (see WVU Study Finds Potential Problems with Frack Wastewater Pits for a copy of the full study). From what we can determine, solid waste, like drilling mud and “cuttings” (leftover rock and soil from drilling) were not part of that study–at all.

But now, the Charleston Gazette identifies and quotes a WVU professor who supposedly worked on that study (although his name doesn’t appear in the study) who says researchers tried to test drill cuttings for radioactivity and were either denied access or put off/delayed until they finally ran out of time and had to file the report without doing the analysis. It’s now a big deal because anti-drillers are raising the specter that everyone is about to glow in the dark from radioactive drill cuttings going to landfills across the state. The WVU prof seems to be intentionally stoking those fears…
Read More “WVU Prof Stokes Radioactive Fears, Says DEP Study Missing Research”
Hydraulic Fracturing | Industrywide Issues | Litigation | Pennsylvania | Regulation | Statewide PA

Gov Corbett Requests Drillers Continue to Honor Act 13 Setbacks
January 7, 2014January 7, 2014

One of the unintended consequences of the recent PA Supreme Court ruling that struck down zoning provisions in PA’s Act 13 law is to weaken environmental protections–specially the distance away from rivers, streams, wells and other bodies of water that drillers sink a well. Act 13 provided for a minimum 300 foot “setback” from water sources, but that’s now out the window after the Court’s decision (see PA Supreme Court Rules Against State/Drillers in Act 13 Case). PA Gov. Tom Corbett yesterday issued a call/challenge/request/plea to the drilling industry to maintain the setback standard in their drilling practices. The industry, via various representative organizations like the Marcellus Shale Coalition, has already responded that indeed they will continue to honor the setback provisions–even though the high court tossed them out. Which is just more evidence of responsible people working together responsibly to safely drill for natural gas and oil in PA. Even when the courts screw it up.

Here’s Gov. Corbett’s request, and the response by the drilling industry:
Read More “Gov Corbett Requests Drillers Continue to Honor Act 13 Setbacks”
Energy Companies | Lease & Royalty Payments | Ohio | Protege Energy | Utica Shale | Washington County (OH)

Marietta, OH Offered $4,750/Acre + 17.5% Royalties for 35 Acres
January 7, 2014January 7, 2014

An offer–or more accurately a pre-offer–was made at the Marietta (OH) City Council meeting yesterday that would put an initial $166,250 in the city’s coffers from leasing 35 city-owned acres along the edge of the city for shale drilling. A driller is tentatively offering $4,750 per acre as a signing bonus, plus 17.5% royalties, for land in the area. Some city council members (Democrats) expressed concerns about the potential offer, and several residents from anti-drilling groups in attendance also added their ~~drivel~~ 2 cents.

Here’s more of the details about the offer–the driller who’s making it, when the drilling would begin, and what was ultimately decided as the next step at yesterday’s meeting…
Read More “Marietta, OH Offered $4,750/Acre + 17.5% Royalties for 35 Acres”
Energy Companies | Energy Services | Hilcorp Energy | Industrywide Issues | Mahoning County | NiSource | Ohio | Pennant Midstream | Processing Plants | Utica Shale

Pennant Midstream Says Hickory Bend (OH) Cryo Plant Now Ready
January 7, 2014January 7, 2014

Good news! Pennant Midstream announced yesterday that its Hickory Bend cryogenic processing plant in Mahoning County, OH is now live and online and ready to receive “wet gas” from the Utica Shale. You may recall Gov. John “foreigner hunter” Kasich dedicated the plant back in October (see OH Gov. Kasich Dedicates Hickory Bend Plant, No Foreigners Found). However, the $375 million plant was not quite ready at that point. It is now, and the gas will start flowing soon.

The even better news is that Pennant, a joint venture between Hilcorp Energy and NiSource, is preparing to build two more plants at the same location. Each plant can handle 200 million cubic feet of raw gas per day, separating it into methane and natural gas liquids (NGLs). The NGLs are then pipelined elsewhere for further processing. Here’s yesterday’s announcement:
Read More “Pennant Midstream Says Hickory Bend (OH) Cryo Plant Now Ready”
Energy Companies | Gulfport Energy | Ohio | Statewide OH | Utica Shale

Gulfport Energy Issues Utica Production Guidance for 2013, 1Q14
January 7, 2014January 7, 2014

Gulfport Energy, one of the most important (and increasingly prolific) drillers in the Utica Shale released a short update yesterday to crow about their production numbers for 2013, set production expectations for the first quarter of 2014, and to remind investors to invest early and invest often.

Here’s yesterday’s Gulfport update…
Read More “Gulfport Energy Issues Utica Production Guidance for 2013, 1Q14”
Commodity Price | Industrywide Issues

The Wild Ride for NatGas Prices in the Northeast
January 7, 2014January 7, 2014

The price that utility companies and large users of natural gas pay at the pipeline is a lot higher than the price drillers sell it for. Like, multiples higher. However, the pipeline sale price does influence how much drillers will receive. Natural gas is a commodity, and like all commodity markets, the price of gas depends on supply and demand. Since gas is sold at hundreds of market points along transmission pipelines across the country, there are hundreds of different, tiny “markets” of supply and demand.

Platts issued an interesting press release/article yesterday about the yo-yoing price of gas right now due to the extreme cold in the northeast and Midwest. While some Marcellus gas is sold by drillers for under $3 per thousand cubic feet (or Mcf, which is the same unit as one million Btus, or MMBtu), some of that same gas is being purchased down the pipeline for upward of $60 per Mcf (or MMBtu)! The current situation is an extreme price spike and it won’t last, but it illustrates just how widely prices can swing in the natgas market…
Read More “The Wild Ride for NatGas Prices in the Northeast”
Health Impacts | Hydraulic Fracturing | Industrywide Issues | Research

Another Flawed Fracking/Health Study Emerges…from Economics Conf
January 7, 2014January 7, 2014

Do they never tire of this crap? Apparently no. We have yet another “study” on how fracking kills people. The latest one comes from an economics conference (yeah, figure that one out). The so-called “research” (not yet peer-reviewed and not yet posted anywhere so it can be evaluated) was shared, or rumored to have been shared, at the annual meeting of the American Economic Association in Philadelphia. The rumored-not-yet-published study claims babies born close to shale drilling sites have an increased chance of being born with low birth weight–a 3.4% increased chance.

Blow the horns! Wail and gnash teeth! Fracking kills! Well, it doesn’t kill, but a few “researchers” claim it maybe/might/could cause a few babies to have to put on some extra weight. But that’s not the narrative that will emerge. The narrative is that fracking kills, so let’s say it over and over as a mantra. Everyone ready? Let’s begin…
Read More “Another Flawed Fracking/Health Study Emerges…from Economics Conf”
Energy Services | Industrywide Issues | Luzerne County | Pennsylvania | Pipelines | UGI Energy Services | Wyoming County (PA)

UGI Wins! Auburn Pipeline with Marcellus Gas in NEPA Goes Live
January 7, 2014January 7, 2014

It’s been a loooong uphill battle for utility company UGI with their Auburn Pipeline system, but by persisting, they’ve finally won against staggering odds. We’re happy to report that the Auburn Pipeline is now fully operational and Marcellus gas is flowing through it. The final leg of the Auburn, which connects the Tennessee Gas Pipeline with the Transco pipeline, is now done. Initially UGI proposed a compressor station in Luzerne County, but that was scrapped (see Luddites of Luzerne: UGI Scraps Plan for PA Compressor Station). The compressor was later built in Wyoming County.

Next up was opposition to a simple “gate station” or metering station. Even though another gate station had been in the area for 50 years, UGI still had to battle the forces of anti-drilling to build a new one (see Back to Kindergarten: UGI Explains NatGas Gate Stations). The gate station got built. Once all the court battles were fought, and won, UGI prevailed and the Auburn is now complete, which is very good news for consumers who will benefit from cheap, regionally extracted Marcellus Shale gas…
Read More “UGI Wins! Auburn Pipeline with Marcellus Gas in NEPA Goes Live”
Hydraulic Fracturing | Industrywide Issues | Ohio | Regulation | Statewide OH | Utica Shale

ODNR’s Proposed New Water Handling Rules for 2014
January 7, 2014January 7, 2014

Here’s a look at proposed new rules and regulations coming to drillers in Ohio’s Utica Shale–this year:
Read More “ODNR’s Proposed New Water Handling Rules for 2014”
Best of the Rest

Marcellus & Utica Shale Story Links: Tue, Jan 7, 2014
January 7, 2014January 7, 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: Tue, Jan 7, 2014”
Antero Resources | Chesapeake Energy | Energy Companies | Gulfport Energy | Industrywide Issues | Ohio | Regulation | Statewide OH | Utica Shale

Surprise Move: ODNR Releases 3Q13 Utica Shale Production Report
January 6, 2014January 6, 2014

Just as MDN went into hiatus for a few days for the holidays, on New Year’s Eve the Ohio Dept. of Natural Resources (ODNR) issued a major announcement: they published their first-ever quarterly production report for the Utica Shale. As MDN previously reported, the Ohio legislature passed a law that requires quarterly reporting (see Ohio Moves One Step Closer to Quarterly O&G Production Reports). However, last word we had was that the reporting would not be required by drillers until “starting” January 2014 (see Ohio Moves to Quarterly Production Reports Starting Jan 2014). Obviously our (and everyone else’s) understanding was wrong. The ODNR has been quietly requiring drillers to start reporting quarterly in 2013, not 2014, and the first such report–for the third quarter of 2013–was released on New Year’s Eve.

We’re certainly not complaining! Just surprised. What does the report show? It shows that the OH Utica produced 33.6 billion cubic feet (Bcf) of natural gas in just 3Q13. For context, the OH Utica produced just 12.8 Bcf of natural gas for all of 2012. It means that 2013 will shape up to be an extraordinary production year in the Utica Shale, proving the naysayers wrong and validating the Utica Shale as one of the most important shale plays in the country. We provide the ODNR announcement below, which crowns two Gulfport wells as most productive (one for oil and one for gas) for 3Q13. We also include analysis of the numbers by our friends at the Akron Beacon Journal. Finally, below is a full copy of the report, in handy PDF format (7 pages long) for you to download or print for your own use.
Read More “Surprise Move: ODNR Releases 3Q13 Utica Shale Production Report”
Hydraulic Fracturing | Industrywide Issues | Ohio | Regulation | Statewide OH | Utica Shale

ODNR Chief Says Utica Shale is “Real Deal” & Feds Should Stay Out
January 6, 2014

James Zehringer, director of the Ohio Department of Natural Resources (ODNR) recently said that the Utica Shale “is the real deal.” By which he meant the Utica is here to stay and a serious shale play, getting a lot of attention (and development). It was only 15 months ago that there was plenty of angst about the Utica because it wasn’t as “oily” as some had hoped. In fact, at the time, Reuters pronounced the Utica a bust (see Reuters Says Utica Shale Boom is Really a Secret Bust). My oh my how wrong they were!

Just in case there’s any lingering doubt (for people like Reuters reporters), Zehringer set out to dispel the naysayers. In his recent remarks, Zehringer also said the feds should mind their own business and leave oil and gas regulation to the states, where it belongs…
Read More “ODNR Chief Says Utica Shale is “Real Deal” & Feds Should Stay Out”
CNG/LNG | Commodity Price | Ethane | Exporting | Industrywide Issues | NGLs

RBN Energy’s 2014 Predictions & the Marcellus Connection
January 6, 2014January 6, 2014

RBN Energy, headed by energy industry luminary Rusty Braziel (formerly an executive with Bentek and veteran of several large oil and gas companies), recently proffered its Top Ten Energy Prognostications for 2014. RBN is based in Houston, but a number of this year’s predictions from RBN are either directly or indirectly related to the Marcellus and Utica Shale, which tells you the stunning impact our northeast energy market is having on the world energy market.

Below is the abbreviated list of RBN’s “top 10” predictions for 2014–the Chinese Year of the Horse. Bear in mind what Rusty says, even as a prognostication, most (including MDN) believe as the gospel truth…
Read More “RBN Energy’s 2014 Predictions & the Marcellus Connection”
Health Impacts | Industrywide Issues | Pennsylvania | Research | Statewide PA

PA Marcellus Health Study by Geisinger Turns into Data Warehouse
January 6, 2014January 6, 2014

In August 2012 two major health system networks announced, to much fanfare, that they would partner to launch a multi-year study of the health impacts on residents living near Marcellus Shale drilling sites (see Health Care Systems Partner to Study Marcellus Impacts). To which we said, great! It’s about time some real science is done instead of pseudo-scientific fantasies spun by people like professors Howarth and Ingraffea at Cornell University. But we quickly learned that Geisinger Health Systems and the other participants in this new study were not willing to fund it themselves–they have their hands out and want someone else to foot the bill. So we’ve had some enjoyment over the past year and a half, poking fun at the non-study study (see PA Marcellus Health Study Still No Pulse – Needs Extra $24M).

Time for an update from the AP on the non-study study. The short version: The comprehensive “study” of health impacts has now morphed into a “data warehouse” for researchers as Geisinger and the other partners continue to putter. Oh, and they still have their hands out…
Read More “PA Marcellus Health Study by Geisinger Turns into Data Warehouse”
Hydraulic Fracturing | Industrywide Issues | Litigation | Pennsylvania | Regulation | Statewide PA

PA’s Impact Fee in Jeopardy from Supreme Court’s Act 13 Decision
January 6, 2014January 6, 2014

The decision of the PA Supreme Court to invalidate large portions of the 2012 Act 13 Marcellus drilling law, particularly those portions dealing with zoning, have left much of the law–perhaps the entire law–in doubt. The court’s decision was like an explosion, and we’re just now seeing the mushroom cloud but haven’t felt the fallout just yet. Did the Supremes just destroy shale drilling in PA? Is their decision really no big deal? It all depends on whom you ask.

One thing that appears to be in jeopardy is the impact fee/tax that’s already raised over $400 million in the last two years. A lot of that fee gets distributed to the places impacted by drilling, hence its name. It’s a sensible fee notwithstanding our objection that 40% of it goes to politicians to spend in non-drilling parts of the state. However, high court’s decision throws the future of the impact fee into doubt. Last week Gov. Tom Corbett’s administration asked the Supreme Court to reconsider its decision and further clarify some issues in hopes the impact fee (among other things) can be retained…
Read More “PA’s Impact Fee in Jeopardy from Supreme Court’s Act 13 Decision”
Air Quality | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Somerset County

PA Drill Equipment Company Predicts Diesel Rigs Gone in 5 Years
January 6, 2014January 6, 2014

For some time now MDN has written about Marcellus drillers who now use dual-fuel drilling rigs–rigs whose big engines are powered by a blend of diesel fuel and natural gas, with some drillers using 100% natural gas-powered engines (see this list of MDN stories). Three weeks ago, CONSOL Energy announced a first–they will use electric motors for drilling near the Pittsburgh Airport (see CONSOL to Use Electric Motors for Drilling at Pittsburgh Airport).

One of the primary suppliers of drilling equipment for Marcellus and Utica drillers, Keystone Drill Services in Somerset County, PA, recently made this startling prediction: Within five years diesel-powered engines will be gone from drill sites. Keystone should know since they’re creating the future now at their Somerset facility…
Read More “PA Drill Equipment Company Predicts Diesel Rigs Gone in 5 Years”