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Marcellus Drilling News
  • Industrywide Issues | Pipelines | Regulation

    Is Federal Regulation of Local Gathering Pipelines on the Way?

    December 20, 2013December 20, 2013

    The permitting and regulating of pipelines in this country–in particular natural gas pipelines–is complex. Depending on the type of pipeline, different federal and state (and even local) government agencies a) permit it, and then perhaps confusingly, b) a different agency ensures it meets safe operating standards. That is, the people who permit it usually don’t inspect it. The biggest gap in the regulation picture is that of local gathering pipelines running from the wellhead to a larger regional pipeline or compressor plant. Ohio recognized this problem and recently put the Public Utilities Commission of Ohio (PUCO) in charge of inspecting gathering lines (see PUCO Now Regulates Gathering Pipelines in Ohio and Cheat Sheet: Which Agencies Regulate OH Drilling/Pipelines).

    Ohio has addressed the “lack of oversight of gathering lines” issue. However, Pennsylvania has not. Gathering lines in the Keystone state are still not regulated or inspected by any government agency, and that gives some people pause–and it gives some a reason to involve the federal government. A DC-based reporter writing for the Chicago-based In These Times publication has written a good article addressing the pipeline issue in general, and PA’s gathering lines in particular. He indicates the federal Pipeline and Hazardous Materials Safety Agency (PHMSA) is sniffing around the regulation of gathering lines, which is worrisome to those of us who believe it’s better regulated at the state level…
    Read More “Is Federal Regulation of Local Gathering Pipelines on the Way?”

  • Best of the Rest

    Marcellus & Utica Shale Story Links: Fri, Dec 20, 2013

    December 20, 2013December 20, 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: Fri, Dec 20, 2013”

  • Energy Companies | WPX Energy

    CEO Shake-up Explained: Taconic Capital Jerking WPX’s Chain

    December 19, 2013December 19, 2013

    don't yank my chainA bit more insight into the sudden departure of WPX Energy CEO Ralph Hill that MDN told you about on Tuesday (see WPX Energy CEO Ralph Hill is Out, Interim CEO James Bender is In). WPX’s former parent, Williams, is being jerked around by corporate raiders who have become its largest investor (see Bad News: Corporate Raiders Take Aim at Williams). In what seems like very strange timing (coordinated attack?) WPX is also being jerked around–in this case by its second largest investor, Taconic Capital Advisors. It was Taconic that apparently wanted Hill gone and one of their own installed on the board. So WPX announced yesterday they’ve reached an “agreement” with Taconic to expand the board by one member, adding Michael Schwartz, a principal and portfolio manager at Taconic, to the WPX board.

    It’s all rather ominous if you ask us. Never a good thing to have so-called investors who don’t give a fig about the company jerking management around this way and that with everybody running for cover and nothing constructive getting done. Here’s the statement issued yesterday by WPX about their “agreement” (at the end of a investment gun barrel) with Taconic:
    Read More “CEO Shake-up Explained: Taconic Capital Jerking WPX’s Chain”

  • Energy Companies | EQT Corp

    EQT to Spend $1.1B on Marcellus Drilling in 2014, $145M on Utica

    December 19, 2013December 19, 2013

    EQT, one of the largest drillers in the Marcellus Shale, released their 2014 “guidance” (what we’ll do next year) update yesterday. And boy oh boy is it a duesy for the Marcellus. EQT says they’ll spend an eye-popping $1.1 billion and drill 186 Marcellus Shale wells in 2014. In the Utica Shale, EQT plans to spend $145 million and drill 21 wells. EQT will actually spend more money to drill in the Upper Devonian Shale layer than the Utica: $155 million to drill 30 wells in the UD.

    EQT will spend the vast majority of it’s planned $1.9 billion in capital expenditures in the northeast in 2014. Here’s the update with full details:
    Read More “EQT to Spend $1.1B on Marcellus Drilling in 2014, $145M on Utica”

  • 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

    Stop Press!

    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”

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